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Managerial Husbandry and the Dynamics of Ongoing Firms

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Abstract

This paper studies the supply and demand for on-the- job training when the success of training is stochastic, firms have to pay hiring costs when they hire skilled workers from the outside, and firms have strictly concave production functions. There are predictions about firm level dynamics and interactions between labor mobility and firm performance. The model generates intermittent labor market events such as lateral mobility, promotions, layoffs and variation in earnings across identically skilled workers. It also explains two labor market phenomena: up or out rules and fast track jobs.

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Bibliographic Info

Paper provided by CREFE, Université du Québec à Montréal in its series Cahiers de recherche CREFE / CREFE Working Papers with number 2.

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Length: 32 pages
Date of creation: Sep 1992
Date of revision:
Publication status: Published, European Economic Review, 40(7), pages 1483-1499, August 1996
Handle: RePEc:cre:crefwp:2

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Related research

Keywords: On-the-job training; Hiring cost; Firm growth; Inter and intra firm mobility; Up or out rules; Fast track jobs;

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Cited by:
  1. Demougin, Dominique & Siow, Aloysius, 1996. "Managerial husbandry and the dynamics of ongoing hierarchies," European Economic Review, Elsevier, vol. 40(7), pages 1483-1499, August.

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