This paper analyzes the costs and benefits of job rotation as a mechanism through which the firm learns about the employees' productivities and the profitability of different jobs or activities. We compare job rotation to an assignment policy where employees specialize in one job along their career. We find that rotation is more profitable than specialization the larger the prior uncertainty about employees and activities. We argue that our firm learning theory fits the existing evidence on rotation better than alternative explanations based on employee motivation and employee learning.
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Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number
00-04.
Length: 15 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:clmsre:00-04
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Find related papers by JEL classification: J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
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