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Careers in Ongoing Hierarchies

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Abstract

The probability that an unskilled worker can be successfully trained and 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.

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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 5.

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Length: 26
Date of creation: Nov 1992
Date of revision:
Publication status: Published, American Economic Review, 84(5), pages 1261-1277, December 1994
Handle: RePEc:cre:crefwp:5

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Keywords: Hierarchies; on-the-job training; on-the-job screening; careers; up or out rules; fast track jobs;

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