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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 ()

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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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Publisher 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. Christian Belzil & Michael Bognanno, 2006. "Promotions, Demotions, Halo Effects and Earnings Dynamics of American Executives," Working Papers 0606, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
    Other versions:
  2. Ben Kriechel & Gerard Pfann, 2005. "The role of specific and general human capital after displacement," Education Economics, Taylor and Francis Journals, vol. 13(2), pages 223-236, June. [Downloadable!] (restricted)
  3. Christian Grund & Niels Westergaard-Nielsen, 2005. "The Dispersion of Employees' Wage Increases and Firm Performance," Bonn Econ Discussion Papers bgse3_2005, University of Bonn, Germany. [Downloadable!]
    Other versions:
  4. Dohmen, Thomas J., 2003. "Performance, Seniority and Wages: Formal Salary Systems and Individual Earnings Profiles," IZA Discussion Papers 935, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Matthias Kräkel, 2008. "Relative Performance Pay, Bonuses, and Job-Promotion Tournaments," Bonn Econ Discussion Papers bgse16_2008, University of Bonn, Germany. [Downloadable!]
    Other versions:
  6. Christian Belzil & Michael Bognanno, 2008. "Promotions, Demotions, Halo Effects and the Earnings Dynamics of American executives," Post-Print halshs-00354270_v1, HAL. [Downloadable!]
  7. Guido Friebel & Elena Panova, 2007. "Insider Privatization and Careers - A Study of a Russian Firm in Transition," NBER Working Papers 12998, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Ben Kriechel & Gerard Pfann, 2006. "Learning to update your reservation wage while looking for a new job," Portuguese Economic Journal, Springer, vol. 5(2), pages 135-148, August. [Downloadable!] (restricted)
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