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Content archived on 2024-06-11

The role of promotion in the design of organizations and dynamic models of employment


1. Theoretical research
Aim: Build a consistent theoretical model of promotion, hierarchical ranks and job assignment. Questions addressed: Organisation structure: Are ranks linked to jobs or abilities? Are ranks necessary for organisations? Teams: Do agents face a trade-off between current cooperation and perspective competition? Do the team size and structure affect its performance? Investment in Human Capital: Does contractual incompleteness lead to suboptimal investment in human capital?
2. Enpirical research
Aim: Test the theoretical findings by comparing the British and Italian institutional settings and labour markets. Mbtivation: These countries are well suited to be compared because of similarity in size and stage of economic development, and differences in competitive and institutional features of labour markets. We hope to find evidence to evaluate comparative statics results from the theoretical models.
3. Policy relevance
The competitiveness of an economy, its ability to respond to international challenges, and its level of employment and welfare are strongly affected by the strength of its large organisations. We expect to find a link between the strength of firms and their internal organisation, and indications of how to increase the effectiveness of industrial policy (with special regard to investment in human capital). Questions addressed: Do industrial policy incentives crowd out" private incentives? Which are the effects of an industrial policy incentives scheme on the organisations of firms? Etc.

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EU contribution
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United Kingdom

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