On The Determinants of Organizational ForgettingAmerican Economic Journal: Microeconomics (2011)
AbstractStudies of organizational learning and forgetting identify potential channels through which the firm’s production experience is lost. While the ability to distinguish between these channels has implications for efficient resource allocation within the firm, to date, their relative importance has been ignored. This paper develops a framework for eliciting 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 sizable skill decay and turnover effects, with the latter having twice the magnitude of the former.
- Organizational Forgetting,
- Labor Turnover,
- Skill Decay,
Publication DateAugust, 2011
Citation InformationDavid, Guy, and Tanguy Brachet. 2011. "On the Determinants of Organizational Forgetting." American Economic Journal: Microeconomics, 3(3): 100–123. DOI:10.1257/mic.3.3.100 http://www.aeaweb.org/articles.php?doi=10.1257/mic.3.3.100