Hiring risky workers: Some evidence

Simon Burgess, Julia Lane, David Stevens

Research output: Contribution to journalArticle

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.

Original languageEnglish (US)
Pages (from-to)669-676
Number of pages8
JournalJournal of Economics and Management Strategy
Volume7
Issue number4
DOIs
StatePublished - 1998

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

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