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Internal promotion versus external recruitment in industrial plants in Spain

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Author Info
Alberto Bayo-Moriones
Pedro Ortín-Ángel
Abstract

Analyzing data obtained from interviews at 653 Spanish industrial plants in 1997, the authors investigate factors affecting the choice between two ways of filling supervisory and skilled technician positions: internal promotion of blue-collar workers, and external recruitment. The use of internal promotion was positively correlated with efforts by plants to measure employees' skills, as well as with the specificity of blue-collar workers' human capital investment at the plant. Contrary to expectations, no evidence is found that the use or efficiency of other incentive systems, such as variable pay, had a significant influence on the degree to which internal promotion was used. The authors interpret their results as preliminary evidence that internal promotions are used to protect and favor specific investments, especially those made by firms to assess their workers' skills. (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 59 (2006)
Issue (Month): 3 (April)
Pages: 451-470
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ilr:articl:v:59:y:2006:i:3:p:451-470

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  1. Uschi Backes-Gellner & Simone Tuor, 2007. "Avoiding Labor Shortages by Employer Signaling - On the Importance of Good Work Climate and Labor Relations," Economics of Education Working Paper Series 0010, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
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  2. Chris Doucouliagos & Phillip Hone & Mehmet Ulubasoglu, 2006. "Discrimination, Peformance and Career Progression in Australian Public Sector Labor Markets," Economics Series 2006_07, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
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