The failure of human capital theory to explain firm related effects on wages, new empirical approaches to internal labor markets, and new work on careers have all led to a recent surge in interest in how firm internal structure, and the jobs within firms, help determine wages. The least developped approach to this new area is the theory of hierarchies, which springs originally from industrial organization and the theory of the firm. The purpose of this paper is to demonstrate the theoretical and empirical importance of management hierarchies.
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Paper provided by New South Wales - School of Economics in its series Papers with number
98-16.
Length: 35 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:nesowa:98-16
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Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials D20 - Microeconomics - - Production and Organizations - - - General
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