Profit Sharing for Increased Training Investments

A.C. Gielen

Research output: Contribution to journalArticleAcademicpeer-review

9 Citations (Web of Science)


This article investigates whether paying a profit-related wage stimulates training investments. The results point to increased worker effort and wage flexibility as two channels through which profit sharing enhances investments in training. While both effects are found for young workers, for older workers, profit sharing mainly affects training investments through greater worker effort. The results suggest that profit sharing can be especially useful for stimulating training among older workers, a growing group in the labour force with a relatively weak labour market position due to a lack of training.
Original languageEnglish
Pages (from-to)643-665
Number of pages23
JournalBritish Journal of Industrial Relations
Issue number4
Publication statusPublished - 1 Jan 2011

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