Monkey Bars and Ladders: The Importance of Lateral and Vertical Job Mobility in Internal Labor Market Careers
AbstractThe research area of the new economics of personnel has a short but important and insightful history. Theory ahead of measurement asks for testing newly developed human resource concepts. These tests often need detailed firm-specific data. Repetition and comparison of results is key in finding out what holds true in general and what marks idiosyncrasy. In this paper, we compare results from the existing literature with the outcomes from analyzing personnel data of the Dutch aircraft manufacturer Fokker during the period January 1, 1987, the day the company started with their electronic personnel filing system, until March 15, 1996, the day the company filed for bankruptcy. We shed light on differences in the functioning of internal labor markets during periods of workforce growth and decline. We find multiple ports of entry that are concentrated in low blue and white-collar levels. New entrants are younger and have higher educational levels than incumbent workers who are promoted to similar jobs. 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. Job-rotation improves promotion chances, stimulates wage growth, and reduces the lay-off risk.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 867.
Length: 76 pages
Date of creation: Aug 2003
Date of revision:
Publication status: published in: Journal of Population Economics, 2004, 17 (2), 193-228
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Other versions of this item:
- Thomas J. Dohmen & Ben Kriechel & Gerard A. Pfann, 2004. "Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers," Journal of Population Economics, Springer, vol. 17(2), pages 193-228, 06.
- Dohmen, Thomas J. & Kriechel, Ben & Pfann, Gerard A., 2004. "Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers," Open Access publications from Maastricht University urn:nbn:nl:ui:27-13667, Maastricht University.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
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- Eriksson, Tor & Ortega, Jaime, 2004.
"The Adoption of Job Rotation: Testing the Theories,"
04-3, University of Aarhus, Aarhus School of Business, Department of Economics.
- 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.
- Ortega, Jaime & Eriksson, Tor, 2006. "The adoption of job rotation: testing the theories," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/7627, Universidad Carlos III de Madrid.
- 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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