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...

Rapid growth of Information Technologies (IT) has had huge influence on enterprises, and it has contributed to its promotion and increasingly extensive use in enterprises. Information Technologies have to a large extent determined the processes taking place in an enterprise; what is more, IT development has brought the need to adopt a brand new approach to human resources management in an enter...