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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.

Suggested Citation

  • Dominique Demougin & Aloysius Siow, 1992. "Careers in Ongoing Hierarchies," Cahiers de recherche CREFE / CREFE Working Papers 5, CREFE, Université du Québec à Montréal.
    • 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;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • J - Labor and Demographic Economics

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