The Persistence of Differences in Productivity, Wages, Skill Mixes and Profits Between Firms in a Rapidly Changing Environment
Katsuya Takii
No 08E003, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University
Abstract:
In this paper, we construct a dynamic assignment model that can provide a unified explanation of persistent differences in productivity, wages, skill mixes and profits between firms in a changing and uncertain environment. Large expected organization capital (firm-specific knowledge) attracts skilled workers, who help to accumulate organization capital. Accumulated large organization capital, in turn, confirms high expectations. This positive feedback brings about persistent differences in these variables in an uncertain environment. We estimate parameters and simulate the model. Our results show that a positive assignment mechanism accounts for a large part of the observed persistence; the difficulty of estimating organization capital plays only an auxiliary role.
Keywords: Organization Capital; Assignment; Persistence (search for similar items in EconPapers)
JEL-codes: J24 L25 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2008-02
New Economics Papers: this item is included in nep-bec, nep-knm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
http://www.osipp.osaka-u.ac.jp/archives/DP/2008/DP2008E003.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:osp:wpaper:08e003
Access Statistics for this paper
More papers in OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University Contact information at EDIRC.
Bibliographic data for series maintained by Akiko Murashita ().