Template-Type: ReDIF-Paper 1.0 Author-Name: C Green Author-Name-First: C Author-Name-Last: Green Author-Name: J S Heywood Author-Name-First: J S Author-Name-Last: Heywood Title: Does profit sharing increase training by reducing turnover? Abstract: We test the theoretical prediction that profit sharing reduces worker separations and by doing so increases the incidence of training. Using individual level UK data, we confirm that profit sharing is a robust determinant of lower separation rates and of greater training incidence. Critically, we cannot confirm the predicted link between separations and training. Instead, the evidence supports alternative theories suggesting a direct link between profit sharing and training. Our results suggest that profit sharing changes employer-worker relations in a way that leads to greater formal and informal investment in worker skills but that this is independent of its influence on reducing separations. Creation-Date: 2007 File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/ProfitSharingTraining.pdf File-Format: application/pdf Number: 589032 Classification-JEL: Keywords: Profit shares, Performance pay, training, turnover Handle: RePEc:lan:wpaper:589032