Managerial Husbandry and the Dynamics of Ongoing Firms

Dominique Demougin () and Aloysius Siow ()

No 2, Cahiers de recherche CREFE / CREFE Working Papers from CREFE, Université du Québec à Montréal

Abstract: This paper studies the supply and demand for on-the- job training when the success of training is stochastic, firms have to pay hiring costs when they hire skilled workers from the outside, and firms have strictly concave production functions. There are predictions about firm level dynamics and interactions between labor mobility and firm performance. The model generates intermittent labor market events such as lateral mobility, promotions, layoffs and variation in earnings across identically skilled workers. It also explains two labor market phenomena: up or out rules and fast track jobs.

Keywords: On-the-job training; Hiring cost; Firm growth; Inter and intra firm mobility; Up or out rules; Fast track jobs (search for similar items in EconPapers)
JEL-codes: J3 L16 M1 (search for similar items in EconPapers)
Pages: 32 pages
Date: 1992-09
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published, European Economic Review, 40(7), pages 1483-1499, August 1996

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Persistent link: https://EconPapers.repec.org/RePEc:cre:crefwp:2

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