The Journal of Law & Economics2013-09-05 2:57 AM

Management of Knowledge Workers

Abstract We study how firm-specific complementary assets and intellectual property rights affect the management of knowledge workers. The main results show when a firm will wish to sue workers who leave with innovative ideas and the effects of complementary assets on wages and on worker initiative. We show that firms protected weakly by complementary assets must sue leaving workers in order to obtain positive profits. Moreover, firms with more complementary assets pay higher wages and have lower rates of turnover, but the higher pay has a detrimental effect on worker initiative. Finally, our analysis suggests that strengthening firms’ property rights protection reduces turnover costs but weakens worker initiative.

KEYWORDS

SHARE & LIKE

COMMENTS

ABOUT THE AUTHOR

The Journal of Law & Economics

The Journal of Law and Economics is an academic journal published by the University of Chicago Press. It publishes articles on the economic analysis of regulation and the behavior of regulated firms, the political economy of legislation and legislative processes, law and finance, corporate finance and governance, and industrial organization. The journal is sponsored by the University of Chicago Law School.

0 Following 0 Fans 0 Projects 9 Articles

SIMILAR ARTICLES

Abstract Between 1850 and 1920, most U.S. states enacted laws expanding the rights of married women to own and control their separate property and to

Read More

Abstract I study the effect of economic liberalization on violent crime. The particular emphasis is on the case of India, where, in the years followin

Read More

Abstract We study how firm-specific complementary assets and intellectual property rights affect the management of knowledge workers. The main results

Read More

Abstract: To date, 19 states have passed medical marijuana laws, yet very little is known about their effects. The current study examines the relation

Read More

Abstract: The elderly are the population most likely to file for bankruptcy, with filings increasing by 150 percent from 1991 to 2007. This is likely

Read More

Abstract: This paper explores the differences between policies prohibiting false claims about product quality and policies requiring adequate prior te

Read More

Abstract: We propose an activity-generating theory of regulation. When courts make errors, tort litigation becomes unpredictable and as such imposes r

Read More

Abstract: We use the Business Roundtable’s challenge to the Securities and Exchange Commission’s (SEC’s) 2010 proxy access rule as a natural experimen

Read More

Abstract: A mandated waiting period between a divorce filing and the issuance of the divorce decree has been adopted in many countries to reduce impet

Read More