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Using Optional Job Rotation Programs to Gauge On-the-Job Learning

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Author Info

  • Anil Arya
  • Brian Mittendorf

Abstract

This paper presents one reason for adopting diverse work assignments, rooted in a desire to match employees' pay with the skills they have cultivated on the job. When on-the-job learning parlays into attractive external opportunities, employees may threaten to seek a different and higher paying job elsewhere. By instituting an optional job rotation program, a firm can offer such an opportunity internally. Since new tasks are difficult for employees to undertake, compensation arrangements can be structured to guarantee that only a truly skilled (versatile) employee wants to take on such a challenge.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 162 (2006)
Issue (Month): 3 (September)
Pages: 505-515

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200609)162:3_505:uojrpt_2.0.tx_2-b

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Cited by:
  1. Daniel Müller, 2010. "On Horns and Halos: Confirmation Bias and Job Rotation," Bonn Econ Discussion Papers bgse05_2010, University of Bonn, Germany.

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