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On the Job Screening, up or out Rules, and Firm Growth

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Author Info
Brendan O'Flaherty
Aloysius Siow

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Abstract

This paper uses on-the-job screening to derive a stochastic and dynamic model of hiring, promotion, and dismissal policies, and their impact on total firm employment and output. The model provides an explanation of the up-or-out rule observed in many organizations. It also provides an explanation for a cost-of-adjustment mechanism for the stock of human capital in a firm.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 25 (1992)
Issue (Month): 2 (May)
Pages: 346-68
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Handle: RePEc:cje:issued:v:25:y:1992:i:2:p:346-68

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  1. James B. Rebitzer & Lowell J. Taylor, 2006. "When Knowledge Is an Asset: Explaining the Organizational Structure of Large Law Firms," IZA Discussion Papers 2353, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Alexander K. Koch & Julia Nafziger, 2007. "Job Assignments under Moral Hazard: The Peter Principle Revisited," IZA Discussion Papers 2973, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Heski Bar-Isaac, 2004. "Something to Prove: Reputation in teams and hiring to introduce uncertainty," Working Papers 04-07, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
  4. Robert Gibbons, 1997. "Incentives and Careers in Organizations," NBER Working Papers 5705, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Naohito Abe & Noel Gaston & Katsuyuki Kubo, 2001. "Executive Pay in Japan : The Role of Bank-Appointed Monitors and the Main BankRelationship," CEI Working Paper Series 2001-10, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
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  6. Dan A. Black & Mark A. Loewenstein, 1996. "Dismissals and Match-Specific Rents," Labor and Demography 9604002, EconWPA. [Downloadable!]
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  7. Boyan Jovanovic & Yaw Nyarko, 1996. "Stepping Stone Mobility," NBER Working Papers 5651, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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