Job Security and Product Market Competition

Esther Gal-Or ()

Journal of Economics & Management Strategy, 1992, vol. 1, issue 2, pages 313-37

Abstract: In the present paper, we relate the extent of job security offered to incumbent managers to the extent of competition among firms in the product market, where the extent of job security is measured by the probability that an incumbent manager continues to be employed by his current firm and the extent of competition is measured by the degree of differentiation between competing brands. We demonstrate that when competition between firms intensifies and "on-the-job training" is relatively more conducive to reducing the variable costs of production, firms tend to offer reduced (increased) job security to incumbent managers, provided that the degree of differentiation between competing products is sufficiently large (small), respectively. If "on-the-job training" is relatively more conducive to reducing the fixed costs of production, however, the previous result is reversed. Copyright 1992 by MIT Press.

Date: 1992

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: http://EconPapers.repec.org/RePEc:bla:jemstr:v:1:y:1992:i:2:p:313-37

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Blackwell Publishing
Series data maintained by Christopher F. Baum ().