Demougin, Dominique; Siow, Aloysius - In: American Economic Review 84 (1994) 5, pp. 1261-77
The probability that an unskilled worker can be successfully trained or screened to be a manager depends on the effort of the firm. With positive hiring costs, a firm prefers to train/screen its own managers. However, the optimal size of the firm for productive efficiency may conflict with...