Health Care Management Papers

Document Type

Journal Article

Date of this Version

8-2011

Publication Source

American Economic Journal:Macroeconomics

Volume

3

Issue

3

Start Page

100

Last Page

123

DOI

10.1257/mic.3.3.100

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.

Copyright/Permission Statement

Copyright © 2016 AEA

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Date Posted: 27 November 2017

This document has been peer reviewed.