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Training, quality of management and firm level bargaining

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  • Mirella Damiani
  • Andrea Ricci

Abstract

The double aim of this paper is to investigate the link between firm training behaviour and the adoption of performance-related pay (PRP) and to verify how the quality of management contributes to explaining the strength of this link. Using Ordinary Least Squares Estimates and Fixed Effect Estimates for a sample of Italian firms, we find that training is a significant determinant of firm level bargaining on PRP. Furthermore, we find that managerial quality plays a significant positive role and suggest that this is because managerial quality favours the evolution of social norms based on wage bonuses that enhance trust, sustain collaborative relationships and motivate co-workers to train each other.

Suggested Citation

  • Mirella Damiani & Andrea Ricci, 2016. "Training, quality of management and firm level bargaining," Quaderni del Dipartimento di Economia, Finanza e Statistica 23/2016, Università di Perugia, Dipartimento Economia.
    • Handle: RePEc:pia:wpaper:0023/2016
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    More about this item

    Keywords

    Training; Compensation; Management; Education;
    All these keywords.

    JEL classification:

    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General

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