American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
On the Determinants of Organizational Forgetting
American Economic Journal: Microeconomics
vol. 3,
no. 3, August 2011
(pp. 100–123)
Abstract
Studies of organizational learning and forgetting identify potential channels through which the firm's production experience is lost. These channels have differing implications for efficient resource allocation within the firm, but their relative importance has been ignored to date. We develop a framework for distinguishing the contributions of labor turnover and human capital depreciation to organizational forgetting. We apply our framework to a novel dataset of ambulance companies and their workforce. We find evidence of organizational forgetting, which results from skill decay and turnover effects. The latter has twice the magnitude of the former. (JEL D23, D83, J24, J63)Citation
David, Guy, and Tanguy Brachet. 2011. "On the Determinants of Organizational Forgetting." American Economic Journal: Microeconomics, 3 (3): 100–123. DOI: 10.1257/mic.3.3.100Additional Materials
JEL Classification
- D23 Organizational Behavior; Transaction Costs; Property Rights
- D83 Search; Learning; Information and Knowledge; Communication; Belief
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J63 Labor Turnover; Vacancies; Layoffs
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