BOSCHMANS, Kris; BOUCKAERT, Jan - Faculteit Toegepaste Economische Wetenschappen, … - 2004
This paper studies job raiding and its effect on incentives to invest in human capital. A firm can offer more attractive wages to new hires than to its current employees, thereby raiding a rival’s workers. Our model shows that firms prefer to raid in equilibrium when given the opportunity to...