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This paper examines the role of hierarchies in the organization of human‐capital‐intensive production. We develop an equilibrium model of hierarchical organization and provide empirical evidence based on confidential data on thousands of law offices. The equilibrium assignment of individuals...
Persistent link: https://www.econbiz.de/10009439762
This paper uses confidential microdata from the Census of Services to examine lawfirms' field boundaries. We find that the share of lawyers working in field-specializedfirms increases as market size increases and lawyers field-specialize, indicating thattransaction costs among lawyers, and not...
Persistent link: https://www.econbiz.de/10008860690
This paper examines hierarchies’ role in the organization of human-capital-intensive productionWe develop an equilibrium model of hierarchical organization, then provide empirical evidenceusing confidential data on thousands of law offices from the 1992 Census of Services. We showhow the...
Persistent link: https://www.econbiz.de/10008860693
Garicano and Rossi-Hansberg (2003) show that knowledge-based hierarchies arecharacterized by positive sorting between workers and managers when knowledgeacquisition takes place before production. We extend the analysis and find thatcomplementarities between manager and worker skill are even...
Persistent link: https://www.econbiz.de/10008860698
A large theoretical literature focuses on the question: What determines firms’ boundaries?Recently, Garicano and Santos and Holmstrom and Milgrom have proposed theories in whichfirms’ boundaries reflect the division of labor across individuals. This paper discussesstrategies for generating...
Persistent link: https://www.econbiz.de/10008860702
Hierarchies allow individuals to leverage their knowledge through others` time.This mechanism increases productivity and ampli…fies the impact of skill heterogeneity on earnings inequality. To quantify this effect, we analyze the earnings andorganization of U.S. lawyers and use an equilibrium...
Persistent link: https://www.econbiz.de/10008860706
Earnings inequality has increased substantially since the 1970s. Using evidence changes from con…dential Census data on U.S. law offices on lawyers'organization and earnings, we study the extent to which the mechanism suggested by Lucas (1978) and Rosen (1982), a scale of operations effect...
Persistent link: https://www.econbiz.de/10008860707
Persistent link: https://www.econbiz.de/10003892050
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Persistent link: https://www.econbiz.de/10003431727