Jiayi Bao, Applied Economics, The Wharton School
Abstract: The management view of human capital as a source of sustained competitive advantage has driven research on how strategic human resource practices affect organizational performance. This project focuses on how a firm’s vacation policy can be a source of competitive advantage in entrepreneurial settings, particularly for innovation. Three types of vacation are examined: job-protected unpaid leave, paid vacation, and unlimited vacation policy. We study how firms may organize innovation activities through the choice of vacation strategies to better capture economic value from their human capital investments.