2019
DOI: 10.1111/meca.12245
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Employer‐employee profit‐sharing and the incentives to innovate when the dismissal regulation matters

Abstract: We develop a simple incomplete‐contract model of the relationship between worker participation to revenue sharing and innovation performance of firms, under firing regimes with different stringency. Stronger worker participation to profits is shown to increase innovation probability when employer‐side hold‐up is prevented by stringent layoff regulation and the human capital matters significantly. Vice‐versa, under a strict layoff regulation, when the financial capital is relatively more important, the effects … Show more

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Cited by 3 publications
(1 citation statement)
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References 20 publications
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“…Considering the main ways for citizens to exercise the right to work, in this case, it is worth highlighting such forms as self-employment, entering into labour relations, engaging in business activities, performing work under civil contracts. However, the most common form of exercising the right to work remains wage labour, which means exercising this right by entering into an employment relationship (Belloc, 2019).…”
Section: Introductionmentioning
confidence: 99%
“…Considering the main ways for citizens to exercise the right to work, in this case, it is worth highlighting such forms as self-employment, entering into labour relations, engaging in business activities, performing work under civil contracts. However, the most common form of exercising the right to work remains wage labour, which means exercising this right by entering into an employment relationship (Belloc, 2019).…”
Section: Introductionmentioning
confidence: 99%