Up-or-Out Contracts: A Signaling Perspective
A firm will typically gather information concerning its own workers that is not available to other potential employers, while other firms will attempt to reduce this information asymmetry by observing the actions of the initial employer. The author argues that this process can be important in environments characterized by up-or-out contracts in that the retentions decision can serve as a signal of productivity. The article investigates this argument in an environment where in-or-out contracts are employed because they provide workers with an incentive to accumulate general human capital and where learning takes place in a diffuse fashion. Copyright 1990 by University of Chicago Press.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Prescott, Edward C & Visscher, Michael, 1980. "Organization Capital," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 446-61, June.
- Michael Waldman, 1983.
"Job Assignments, Signalling nad Efficiency,"
UCLA Economics Working Papers
286, UCLA Department of Economics.
- Rosen, Sherwin, 1981.
"Studies in Labor Markets,"
National Bureau of Economic Research Books,
University of Chicago Press,
edition 0, number 9780226726281.
- Harris, Milton & Holstrom, Bengt, 1982.
"A Theory of Wage Dynamics,"
Review of Economic Studies,
Wiley Blackwell, vol. 49(3), pages 315-33, July.
- Ricart i Costa, Joan E, 1988. "Managerial Task Assignment and Promotions," Econometrica, Econometric Society, vol. 56(2), pages 449-66, March.
- Novos, I.E., 1988. "Worker Preferences And Firm Structure," Papers m8821, Southern California - Department of Economics.
- Paul R. Milgrom, 1984.
"Job Discrimination, Market Forces and the Invisibility Hypothesis,"
Cowles Foundation Discussion Papers
708R, Cowles Foundation for Research in Economics, Yale University, revised 1985.
- Milgrom, Paul & Oster, Sharon, 1987. "Job Discrimination, Market Forces, and the Invisibility Hypothesis," The Quarterly Journal of Economics, MIT Press, vol. 102(3), pages 453-76, August.
- Edward P. Lazear, 1984. "Raids and Offermatching," NBER Working Papers 1419, National Bureau of Economic Research, Inc.
- Kahn, Charles & Huberman, Gur, 1988. "Two-sided Uncertainty and "Up-or-Out" Contracts," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 423-44, October.
- MacDonald, Glenn M, 1982. "A Market Equilibrium Theory of Job Assignment and Sequential Accumulation of Information," American Economic Review, American Economic Association, vol. 72(5), pages 1038-55, December.
When requesting a correction, please mention this item's handle: RePEc:cla:uclawp:556. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tim Kwok)
If references are entirely missing, you can add them using this form.