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Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers

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Author Info

  • Thomas J. Dohmen

    ()

  • Ben Kriechel

    ()

  • Gerard A. Pfann

    ()

Abstract

This paper compares results from the empirical literature on internal labor markets with outcomes from analyzing personnel data of the Dutch aircraft manufacturer Fokker. It sheds light on differences in the functioning of internal labor markets between periods of workforce growth and decline. Despite substantial variation in individual wages, careers are important as wages are strongly related to job levels. Promotion rates fall and demotion rates rise when the firm enters the stage of demise. Vertical and lateral job mobility are important in internal labor market careers as they stimulate wage growth and reduce the lay-off risk. Copyright Springer-Verlag 2004

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File URL: http://hdl.handle.net/10.1007/s00148-004-0191-4
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Bibliographic Info

Article provided by Springer in its journal Population Economics.

Volume (Year): 17 (2004)
Issue (Month): 2 (06)
Pages: 193-228

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Handle: RePEc:spr:jopoec:v:17:y:2004:i:2:p:193-228

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Related research

Keywords: Internal labor markets; human resource management; personnel economics; M51; J31; J41;

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  1. Tor Eriksson & Jaime Ortega, 2006. "The adoption of job rotation: Testing the theories," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(4), pages 653-666, July.
  2. Lima, Francisco, 2000. "Internal labour markets: a case study," FEUNL Working Paper Series wp378, Universidade Nova de Lisboa, Faculdade de Economia.
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