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Careers in Ongoing Hierarchies

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Author Info
Demougin, Dominique
Siow, Aloysius

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Abstract

The probability that an unskilled worker can be successfully trained or screened to be a manager depends on the effort of the firm. With positive hiring costs, a firm prefers to train/screen its own managers. However, the optimal size of the firm for productive efficiency may conflict with efficient managerial husbandry. How a firm copes with the above constraint generates stochastic layoffs, lateral mobility, promotions, diverse earnings profiles, fast-track jobs, and up-or-out rules. Copyright 1994 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 84 (1994)
Issue (Month): 5 (December)
Pages: 1261-77
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Handle: RePEc:aea:aecrev:v:84:y:1994:i:5:p:1261-77

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  1. Heisz, Andrew & Oreopoulos, Philip, 2006. "Importance des signaux de compétence pour l'obtention d'un emploi et de l'avancement," Direction des études analytiques : documents de recherche 2006236f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  2. Heisz, Andrew & Oreopoulos, Philip, 2006. "The Importance of Signalling in Job Placement and Promotion," Analytical Studies Branch Research Paper Series 2006236e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  3. Bernard Sinclair-Desgagné & Olivier Cadot, 1997. "Career Concerns and the Acquisition of Firm-Specific Skills," CIG Working Papers FS IV 97-19, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
    Other versions:
  4. Joao Ricardo Faria, 2000. "An Economic Analysis of the Peter and Dilbert Principles," Working Paper Series 101, School of Finance and Economics, University of Technology, Sydney. [Downloadable!]
  5. Robert Gibbons, 1997. "Incentives and Careers in Organizations," NBER Working Papers 5705, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Dohmen, Thomas J., 2003. "Performance, Seniority and Wages: Formal Salary Systems and Individual Earnings Profiles," IZA Discussion Papers 935, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Zimmermann, Klaus F., 1998. "German Job Mobility and Wages," IZA Discussion Papers 04, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Wallace HUFFMAN & Richard E. JUST, 1995. "Transaction Costs, Fads, And Politically Motivated Misdirection In Agricultural Research," Staff Papers 277, Iowa State University Department of Economics. [Downloadable!]
  9. Marko Tervio, 2003. "Mediocrity in Talent Markets," Institute for Research on Labor and Employment, Working Paper Series 1098, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
  10. Robert Gibbons & Michael Waldman, 1998. "A Theory of Wage and Promotion Dynamics in Internal Labor Markets," NBER Working Papers 6454, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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