The Growth of Extended 'Entry Tournaments' and the Decline of Institutionalised Occupational Labour Markets in Britain
AbstractIn recent years, British labour markets have been characterised by a decline of institutional regulation of entry routes into many occupations and internal labour markets. This paper examines this change by comparing occupational labour markets for selected occupations in which institutional regulation has remained largely intact with those in which entry has become more fluid. It argues that in the latter case, structured entry paths, which were characterised by competition at the ports of entry, have given way to extended entry tournaments in which competition is spread over a much longer time period. Using data from the New Earnings Survey panel for 1975-2001, it relates the comparatively greater growth in earnings inequality in these occupations to the emergence of extended entry tournaments. As pay at the top has risen, greater competition for entry at the bottom has held down pay and depressed conditions. It argues that many of the aspirant members of these occupations compete for entry for too long, and then become trapped as it is too late to change occupation.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0989.
Date of creation: Jun 2010
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Wage Level and Structure; Wage Differentials by Skill; Training; Professional Labor Markets and Occupations;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-10 (All new papers)
- NEP-LAB-2010-07-10 (Labour Economics)
- NEP-REG-2010-07-10 (Regulation)
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- Bognanno, Michael L, 2001. "Corporate Tournaments," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 290-315, April.
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