On the Job Screening, up or out Rules, and Firm Growth

Brendan O'Flaherty and Aloysius Siow ()

Canadian Journal of Economics, 1992, vol. 25, issue 2, 346-68

Abstract: This paper uses on-the-job screening to derive a stochastic and dynamic model of hiring, promotion, and dismissal policies, and their impact on total firm employment and output. The model provides an explanation of the up-or-out rule observed in many organizations. It also provides an explanation for a cost-of-adjustment mechanism for the stock of human capital in a firm.

Date: 1992
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Citations: View citations in EconPapers (33)

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Working Paper: On the Job Screening, Up or Out Rules, and Firm Growth (1990)
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