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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|Date of creation:||1990|
|Date of revision:|
|Contact details of provider:|| 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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