Commitment in Organizations and the Competition for Talent

• Thomas Cooley ^[1] ; Ramon Marimon ^[2]
  1. [1] New York University

     New York University

     Estados Unidos

     
  2. [2] European University Institute

     European University Institute

     Firenze, Italia

     
• Localización: Review of economic studies, ISSN 0034-6527, Vol. 87, Nº 5, 2020, págs. 2165-2204
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • We show that a change in organizational structure from partnerships to public companies—which weakens contractual commitment—can lead to higher investment in high return-and-risk activities, higher productivity (value added per employee) and greater income dispersion (inequality). These predictions are consistent with the observed evolution of the financial sector where the switch from partnerships to public companies has been especially important in the decades that preceded the 21st Century financial crisis.