Firm Growth and Promotion Opportunities

Time：2019-11-19 10:55:18

We develop a model in which a firm makes a sequence of production decisions and has to motivate each of its employees to exert effort. The firm motivates its employees through incentive pay and promotion opportunities, which may differ across different cohorts of workers. We show that the firm benefits from reallocating promotion opportunities across cohorts, resulting in an optimal personnel policy that is seniority-based. We also highlight a novel time-inconsistent motive for firm growth: when the firm adopts an optimal personnel policy, it may pursue future growth precisely to create promotion opportunities for existing employees.

Seminars

Firm Growth and Promotion Opportunities

Oct 12 2017

Sep 18 2018

Feb 22 2017

Time:Dec 20 2019

Time:Dec 20 2019

Time:Dec 19 2019

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