Long-Term Attachments and Long-Run Firm Rates of Return
- Topics:
- Human Capital
- Tags:
- Asset,
- Worker,
- Operational Planning,
- Human Resources,
- Human Capital,
- Firm,
- Business Operations,
- Attachment,
- Asset Management,
- Workforce Management
- Source:
- Thomson Gale
Vendor Registration: required
Overview: Long-term attachments between workers and firms are common. Numerous studies have examined worker returns to tenure, but little is known of firm returns to firm-worker matches. Yet these attachments represent a human capital asset quasi-held by the firm, which is not captured by traditional accounting measures of firm assets. Firms with large quasi-holdings of human capital will have higher measured return on assets, other things equal. Analysis of data on 250 large manufacturing firms supports the view that firms profit from long-term attachments with their workers. Consequently, unmeasured human capital assets contribute to the explanation of persistence in measured long-run excess profits across firms.
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Format: HTML | Date: Oct 2004
