Promotions, Dismissals, and Employee Selection: Theory and Evidence
| Autor: | Anders Frederiksen, Elod Takats |
|---|---|
| Rok vydání: | 2009 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Hierarchy ComputingMilieux_THECOMPUTINGPROFESSION media_common.quotation_subject Payment Microeconomics Promotion (rank) Incentive Dismissal Economics Selection (linguistics) Quality (business) Employee selection Law ComputingMilieux_MISCELLANEOUS media_common |
| Zdroj: | Frederiksen, A & Takáts, E 2011, ' Promotions, dismissals, and employee selection: Theory and evidence ', Journal of Law, Economics, and Organization, vol. 27, no. 1, pp. 159-179 . https://doi.org/10.1093/jleo/ewp017 |
| ISSN: | 1465-7341 8756-6222 |
| DOI: | 10.1093/jleo/ewp017 |
| Popis: | Firms offer highly complex contracts to their employees. These contracts contain a mix of incentives, such as fixed wages, bonus payments, promotion options, and dismissals or threats of dismissal. In this article, we show that firms having a production process that is sensitive to employee quality may find it optimal to combine cost-efficient incentives such as bonuses and promotions with dismissals. Based on this result, we derive a hierarchy of incentives. Furthermore, we demonstrate the close link between the optimal contract and the employee sorting and selection and use this to analyse the information conveyed in employment matches. Firms offer highly complex contracts to their employees. These contracts contain a mix of incentives, such as fixed wages, bonus payments, promotion options, and dismissals or threats of dismissal. In this article, we show that firms having a production process that is sensitive to employee quality may find it optimal to combine cost-efficient incentives such as bonuses and promotions with dismissals. Based on this result, we derive a hierarchy of incentives. Furthermore, we demonstrate the close link between the optimal contract and the employee sorting and selection and use this to analyse the information conveyed in employment matches. |
| Databáze: | OpenAIRE |
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