Two perspectives on multiskilling and product-market volatility

Jed DeVaro and Martin Farnham

Labour Economics, 2011, vol. 18, issue 6, 862-871

Abstract: We study the effect of product-market volatility on a firm's choice between multiskilling and specialization. We construct a theoretical model that captures the tradeoff between multiskilling (which gives greater flexibility to reassign workers in production) and specialization (which provides workers with the expertise to respond to product market signals in their area of specialty). Using data from a nationally-representative cross section of British establishments, we find that greater volatility is associated with greater specialization. This result holds both inside and outside of manufacturing, but consistent with our model, it holds only in multi-product establishments and not in single-product ones.

Keywords: Training; Job design (search for similar items in EconPapers)
JEL-codes: J24 M53 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Working Paper: Two Perspectives on Multiskilling and Product Market Volatility (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:18:y:2011:i:6:p:862-871

DOI: 10.1016/j.labeco.2011.07.004

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