.... profits). Design/methodology/approach – The authors apply dynamic panel data techniques to detailed Belgian linked employer-employee panel data covering the period 1999-2006. Findings – Results indicate that FTCs exert stronger positive effects on productivity than on wages and (accordingly...

... the incentives embedded in revenue sharing to raise effort, while monitoring is used under fixed pay to ensure that the worker supplies a given level of effort. Our focus is on the firm's choice: which pay scheme –fixed pay (FP) or performance‐related pay (PRP) – maximises expected profits? Technology...

... related to firm profits‐per‐employee even when controlling for group effects in the residuals, individual and firm characteristics, industry wage differentials and endogeneity of profits. Our instrumented wage‐profit elasticity is of the magnitude 0.06 and it is not significantly different for men...