Teaching Old Dogs New Tricks: Acquisition or Accumulation of Resources?

40 Pages Posted: 16 Feb 2010 Last revised: 20 Dec 2013

See all articles by Bo H. Eriksen

Bo H. Eriksen

Region of Southern Denmark; affiliation not provided to SSRN

Date Written: December 20, 2013


This study examines the tradeoffs between accumulating resources internally and acquiring resources in strategic factor markets. In the labor market context, I consider the performance implications of external hiring and internal development of human capital resources in a panel study of 3,033 Danish manufacturing firms. The study provides empirical evidence that hiring experienced workers is unprofitable, whereas building human capital resources internally is. Building human capital resources successfully appears in part to be conditional on a certain amount of on the job screening.

Keywords: Firm-specific human capital, strategic human capital, firm performance, screening, panel data

JEL Classification: C23, M10, M12, M50, M51, J6, J24, D24

Suggested Citation

Eriksen, Bo H., Teaching Old Dogs New Tricks: Acquisition or Accumulation of Resources? (December 20, 2013). Available at SSRN: https://ssrn.com/abstract=1553367 or http://dx.doi.org/10.2139/ssrn.1553367

Bo H. Eriksen (Contact Author)

Region of Southern Denmark ( email )

Damhaven 12
Vejle, DK-7100
DK-7100 (Fax)

affiliation not provided to SSRN

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