On the Job Screening, up or out Rules, and Firm Growth
This 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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Volume (Year): 25 (1992)
Issue (Month): 2 (May)
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