O'Flaherty, Brendan; Siow, Aloysius - In: Canadian Journal of Economics 25 (1992) 2, pp. 346-68
This paper uses on-the-job screening to derive a stochastic and dynamic model of hiring, promotion, and dismissal policies, and their impact on total firm employment and output. The model provides an explanation of the up-or-out rule observed in many organizations. It also provides an...