Selection of workers and firm heterogeneity

George W.J. Hendrikse

doi:10.1007/BF00389851

Selection of workers and firm heterogeneity

George W.J. Hendrikse^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

A model based on differences between workers regarding their preferences for wage and leisure drives the heterogeneity of firms result. The more industrious workers are driven to small firms due to free riding in large firms. An industry consisting of small and large firms turns out to produce more output than an industry consisting of only large firms. Some comparative statics results are derived with respect to the size of large firms, the productivity difference between firms, and monitoring capabilities.

Original language	English
Pages (from-to)	105-111
Number of pages	7
Journal	Small Business Economics
Volume	4
Issue number	2
DOIs	https://doi.org/10.1007/BF00389851
Publication status	Published - Jun 1992
Externally published	Yes

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Selection of workers and firm heterogeneity

Abstract

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