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Internal Labour Markets: Causes and Consequences

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Author Info

  • Siebert, W S
  • Addison, J T

Abstract

The paper analyzes the causes and consequences of internal labor market rules that yield long tenure promotion from within, seniority, pensions, and "due process" in dismissals. About half the workforce are estimated to be in such markets. Competitive reasons for internal labor markets as a response to specific training and arms-length relationships between workers and firms are surveyed. These reasons are found to be consistent with the pattern of internal labor markets among non-union firms. However, some internal labor markets, (e.g. among small unionized firms) are probably a response to union pressure and government regulations. In these circumstances, low labor mobility could pose problems for policy. Copyright 1991 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 7 (1991)
Issue (Month): 1 (Spring)
Pages: 76-92

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Handle: RePEc:oup:oxford:v:7:y:1991:i:1:p:76-92

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Web page: http://oxrep.oupjournals.org/

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Cited by:
  1. Daniel, Kirsten & Heywood, John S., 2007. "The determinants of hiring older workers: UK evidence," Labour Economics, Elsevier, vol. 14(1), pages 35-51, January.
  2. Stephani, Jens, 2013. "Does it matter where you work? : employer characteristics and the wage growth of low-wage workers and higher-wage workers," IAB Discussion Paper 201304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Cornelissen, Thomas & Hübler, Olaf, 2007. "Unobserved Individual and Firm Heterogeneity in Wage and Tenure Functions: Evidence from German Linked Employer-Employee Data," IZA Discussion Papers 2741, Institute for the Study of Labor (IZA).
  4. Jenny Meyer, 2011. "Workforce age and technology adoption in small and medium-sized service firms," Small Business Economics, Springer, vol. 37(3), pages 305-324, October.
  5. 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.
  6. Dudley Baines & Peter Howlett & Paul Johnson, 1992. "Human capital and payment systems in Britain, 1833-1914," Economic History Working Papers 22453, London School of Economics and Political Science, Department of Economic History.
  7. Clive Belfield & Xiangdong Wei, 2004. "Employer size-wage effects: evidence from matched employer-employee survey data in the UK," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 185-193.
  8. Stephani, Jens, 2012. "Wage growth and career patterns of German low-wage workers," IAB Discussion Paper 201201, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  9. Heywood, John S. & Wei, Xiangdong, 1997. "Piece-Rate Payment Schemes and the Employment of Women: The Case of Hong Kong," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 237-255, October.

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