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Development and Retention of Human Capital in Large Bureaucracies

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  • Darrell J. Glaser

    (United States Naval Academy)

  • Ahmed S. Rahman

    (United States Naval Academy)

Abstract

This paper examines the effects of engineer-oriented and technical experience on job mobility during an era of rapid technological advance. We first develop an on-the-job search model to help us understand factors leading to job switching under rigid payment systems. Then, using longitudinal data on late 19th-Century British and American naval officer- and engineer-careers, we show how different forms of technical experience and pro- motion rates infl uence job switching. Using our estimates we find rates of return to technical experience rising dramatically by the turn of the 20th Century. To our knowledge these are the earliest estimates of returns to any type of technical skill. These findings help us understand how modernizing organizations can become more vulnerable to loss of skilled personnel, and how organizations might optimally respond to such loss.

Suggested Citation

  • Darrell J. Glaser & Ahmed S. Rahman, 2017. "Development and Retention of Human Capital in Large Bureaucracies," Departmental Working Papers 60, United States Naval Academy Department of Economics.
    • Handle: RePEc:usn:usnawp:60
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    References listed on IDEAS

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    Cited by:

    1. Ahmed S. Rahman, 2020. "Officer retention and military spending: the rise of the military‐industrial complex during the Second World War," Economic History Review, Economic History Society, vol. 73(4), pages 1074-1096, November.

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