On the Job Screening, Up or Out Rules, and Firm Growth
AbstractThis 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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Bibliographic InfoPaper provided by Chicago - Economics Research Center in its series University of Chicago - Economics Research Center with number 90-11.
Length: 39 pages
Date of creation: 1990
Date of revision:
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Postal: UNIVERSITY OF CHICAGO, ECONOMICS RESEARCH CENTER, NORC, CHICAGO ILLINOIS 60637 U.S.A.
Web page: http://economics.uchicago.edu/research.shtml
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economic models ; employment ; enterprises;
Other versions of this item:
- Brendan O'Flaherty & Aloysius Siow, 1992. "On the Job Screening, up or out Rules, and Firm Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 346-68, May.
- O'Flaherty, B. & Siow, A., 1989. "On The Job Screening, Up Or Out Rules, And Firm Growth," Discussion Papers 1989_02, Columbia University, Department of Economics.
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