Hiring Risky Workers: Some Evidence

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 1998
Volume: 7
Issue: 4
Pages: 669-676

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Lazear recently suggested that firms that do not expect to live for a long time will hire only safe workers. Hence their worker turnover will be lower. In this paper we test this hypothesis using both the industry growth rate and industry‐average age of establishments as measures of the horizon for a particular firm. We find mixed results, both at the industry level and at the establishment level. Establishments in growing industries do indeed exhibit higher churning flows, but a high average age of establishments reduces rather than increases churning.

Technical Details

RePEc Handle
repec:bla:jemstr:v:7:y:1998:i:4:p:669-676
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25