Inefficient Labor Market Sorting

Arbeitspapier

A growing empirical literature attributes much of the productivity advantages of large, "superstar" firms to their adoption of best practice management techniques that allow them to better identify and use talented workers. The reasons for the incomplete adoption of these "structured management practices" and their welfare implications are not well understood. This paper provides a positive and normative analysis of these issues in a theoretical framework in which structured management practices induce sorting of talent across firms. Incomplete adoption arises because worker talent is in limited supply. In equilibrium there is excessive adoption of structured management practices and too much sorting of talented workers into large firms. In this second-best environment, policy changes that favor large firms, such as trade liberalization, have the potential to lower welfare.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper ; No. 437

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Trade and Labor Market Interactions ; Wage Level and Structure; Wage Differentials ; Compensation Packages; Payment Methods ; Monopsony; Segmented Labor Markets ; Personnel Economics: Firm Employment Decisions; Promotions
• Thema: labor market imperfection ; misallocation ; productivity ; wage inequality ; international trade ; welfare

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Eckel, Carsten ; Yeaple, Stephen R.
• Ereignis: Veröffentlichung
• (wer): Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
• (wo): München und Berlin
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/282129
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ