Midlands State University Library

Internal promotion and external recruitment: A theoretical and empirical analysis/

DeVaro, Jed

Internal promotion and external recruitment: A theoretical and empirical analysis/ created by Jed De Varo - Journal of labor economics Volume31 , number 2 .

We present a theoretical and empirical analysis of internal promotion versus external recruitment, using a job-assignment model involving competing firms with heterogeneous productivities and two-level job hierarchies with one managerial position. The model predicts that, controlling for the number of managers, increasing the number of lower-level workers is associated with (1) greater internal promotion as opposed to external recruitment, (2) higher profit, and (3) more general training. Empirical analysis of a large cross section of British employers is consistent with these predictions.

0734306X


Recruitment--Labour productivity--Internal labour market

HD5706 JOU