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Has Profit Sharing Led to Fewer Separations?

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  • Kenneth Snellman

Abstract

This study examines the e ect of profit sharing on the employee turnover in firms. The existence of a profit sharing programme (or performance related pay) in a firm is in general associated with a reduction in the probability of separation for salaried employees by 1–2 percentage points for the average employee. It is doubtful whether there is a reduction in the turnover for wage earners. The estimates indicate that more firm-specific human capital relative to general human capital is associated with a lower probability of separation.

Suggested Citation

  • Kenneth Snellman, 2002. "Has Profit Sharing Led to Fewer Separations?," Working Papers 187, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    • Handle: RePEc:pst:wpaper:187
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    File URL: https://labore.fi/wp-content/uploads/2002/12/Tyopapereita-187.pdf
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