Supply of skilled labour and organizational change |
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| Authors: | Radoslawa Nikolowa |
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| Affiliation: | 1. School of Mechanical Engineering, University of Adelaide, South Australia 5005, Australia;2. Department of Mechanical and Construction Engineering, Northumbria University, Newcastle upon Tyne NE1 8ST, UK |
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| Abstract: | The paper develops a model where the structure of organizations is a choice variable for firms and depends on conditions in the labour market. It shows that an increase in the supply of skilled labour may lead firms to adopt organizations with less hierarchical levels. This organizational change increases firms' demand for skilled agents and qualitatively modifies their jobs (i.e. the set of tasks assigned to skilled employees) thus increasing the skilled wage premium. |
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