Using the matched employer-employee data set for Denmark and information on the founders of new firms, we analyze the hiring choices of all new firms that entered in 1995-2001. We develop a theoretical model in which the quality of a firm's employees determines its average cost, a firm's...

Retirement is characterized as a dynamic process that can designate different outcomes: from early retirement to re-entry to the labour force. Recent studies on the Dutch population show that a substantial number of early retirees re-enter the work force after early retirement. Yet others do not...

Job testing technologies enable firms to rely less on human judgement when making hiring decisions. Placing more weight on test scores may improve hiring decisions by reducing the influence of human bias or mistakes but may also lead firms to forgo the potentially valuable private information of...

This study examines the relationship between external hiring and the allocation of decision authority within organizations, and how they interact to affect organizational change and innovation. We test our hypotheses using panel data for a nationally representative sample of businesses in...