FIRM SPECIFIC HUMAN CAPITAL AS AN EMPLOYER DISCIPLINE DEVICE

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

The inability of employers to monitor perfectly the level of effort of their employees is a potentially serious impediment to labor market efficacy. Indeed, a number of recent studies have concluded that this may lead to involuntary unemployment (Shapiro and Stiglitz [1984], Sparks [1986]); an inefficient sectoral allocation of workers (Oi [1990], Strand [1986]); and discrimination against productively identical workers (Bulow and Summers [1986]). This paper shows that the lock‐in effect of firm‐specific human capital can help alleviate problems of worker moral hazard and thereby promote labor market performance.

Original languageEnglish (US)
Pages (from-to)128-137
Number of pages10
JournalEconomic Inquiry
Volume32
Issue number1
DOIs
StatePublished - 1994
Externally publishedYes

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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