Job rotation or specialization? A dynamic matching model analysis

Morimitsu Kurino () and Yoshinori Kurokawa
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Morimitsu Kurino: Keio University

Review of Economic Design, 2024, vol. 28, issue 2, No 1, 243-273

Abstract: Abstract Which is better for a firm, job rotation or specialization, can be considered as an endogenously formed worker-indivisible job matching problem. We model this problem as a firm’s profit maximization problem under uncertainty, with and without overlapping generations. In both models, we show that among all possible job allocations, the rotation and specialization schemes are the only variations that can be optimal in terms of profits. Moreover, the rotation scheme is better when the productivity difference between post- and under-training workers is smaller, the uncertainty about job continuation in the future is more significant, or the slope of seniority wages is larger. The results indicate that firms in different environments prefer different worker-job matchings.

Keywords: Job assignment; Rotation; Specialization; Matching theory; Overlapping generations (search for similar items in EconPapers)
JEL-codes: C78 P51 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10058-023-00345-7

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