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Job Rotation as a Mechanism for Learning

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  • Ortega, Jaime

    () (Centre for Labour Market and Social Research, Aarhus School of Business)

Abstract

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.

Suggested Citation

  • Ortega, Jaime, 2000. "Job Rotation as a Mechanism for Learning," CLS Working Papers 00-4, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  • Handle: RePEc:hhs:aarcls:2000_004
    Note: Published in: Management Science, Vol. 47, No. 10, pp. 1361-1370 (www.informs.orgs/Pubs/Mansci/)
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    More about this item

    Keywords

    Job rotation; Productivity;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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