Learning by doing and adverse selection: the importance of commitment

Ian E. Novos
Additional contact information
Ian E. Novos: Georgia Insitute of Technology, Atlanta

Finnish Economic Papers, 1992, vol. 5, issue 2, 79-90

Abstract: The analysis in Novos (1990) is extended to incorporate a richer signalling dimension. Specifically, firms observe the evolving employment histories of workers. Results show, firstly, that when firms are not integrated across tasks there is an inefficient allocation of workers across tasks. Second, when firms are integrated across tasks workers are, ex-ante, efficiently allocated across tasks. Finally, when firm structure is an endogenous choice firms will choose to be integrated. A crucial role in the analysis is occupied by the idea ofa »promotion commitment.» The central role often played by personnel departments in this regard is discussed.

JEL-codes: L22 (search for similar items in EconPapers)
Date: 1992
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://taloustieteellinenyhdistys.fi/images/stories/fep/f1992_2a.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:fep:journl:v:5:y:1992:i:2:p:79-90

Access Statistics for this article

More articles in Finnish Economic Papers from Finnish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Editorial Secretary ( this e-mail address is bad, please contact ).