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Reorganization of Firms and Job Stability: A Theoretical Approach
Author(s) -
MorenoGalbis Eva
Publication year - 2007
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.2007.00383.x
Subject(s) - restructuring , job design , job creation , job characteristic theory , stability (learning theory) , point (geometry) , empirical research , business , industrial organization , economics , labour economics , job performance , job satisfaction , management , computer science , mathematics , finance , machine learning , statistics , geometry
. This paper seeks to provide a theoretical explanation to the contradictory results found by the empirical literature concerning the effects of recent workplace organizational changes on job stability. We develop an endogenous job destruction model à la Mortensen‐Pissarides (1994) where a modernizing firm may offer to the worker a tayloristic job (traditional organization) or a holistic job (modern organization). We then study the evolution of job stability during the transition from a tayloristic to a holistic organization. Our results point towards the importance of the restructuring costs supported by firms during the modernizing trajectory as the main factor responsible for the variations in job stability.