A basic problem facing most labor markets is that workers can neither commit to long-term wage contracts nor can they self …nance the costs of production. I study the e¤ects of these imperfections when talent is industry-speci…c, it can only be revealed on the job, and once learned becomes public information. I show that …rms bid excessively for the pool of incumbent workers at the expense of t...

One of the most critical issues for building innovation capacity in organisations is the acquisition and maintenance of knowledge. As knowledge is the basis of human capital, then the ability to attract, retain and engage talent is argued to be an important element of innovation. By attracting and retaining good staff, the organisation is retaining organisational knowledge which is necessary pa...