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An empirical note on wages in an internal labour market

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  • Pfeifer, Christian

Abstract

Earnings functions are estimated using personnel data of a German company. Results support a positive correlation between human capital, hierarchical levels, promotions, and wages. Moreover, promoted and newly hired employees start at the bottom of a level's wage distribution.

Suggested Citation

  • Pfeifer, Christian, 2008. "An empirical note on wages in an internal labour market," Economics Letters, Elsevier, vol. 99(3), pages 570-573, June.
  • Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:570-573
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    References listed on IDEAS

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    1. Christian Pfeifer, 2010. "Determinants of Promotions in an Internal Labour Market," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 62(4), pages 342-358, October.
    2. Treble, John & van Gameren, Edwin & Bridges, Sarah & Barmby, Tim, 2001. "The internal economics of the firm: further evidence from personnel data," Labour Economics, Elsevier, vol. 8(5), pages 531-552, December.
    3. George Baker & Michael Gibbs & Bengt Holmstrom, 1994. "The Internal Economics of the Firm: Evidence from Personnel Data," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 881-919.
    4. Edward P. Lazear, 1999. "Personnel Economics: Past Lessons and Future Directions," NBER Working Papers 6957, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Christian Pfeifer, 2014. "Base Salaries, Bonus Payments, and Work Absence among Managers in a German Company," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(5), pages 523-536, November.
    2. Grund, Christian & Hofmann, Tanja, 2017. "The Dispersion of Bonus Payments within and between Firms," IZA Discussion Papers 10642, Institute for the Study of Labor (IZA).
    3. Christian Pfeifer, 2009. "Adjustment of Deferred Compensation Schemes, Fairness Concerns, and Hiring of Older Workers," Working Paper Series in Economics 151, University of Lüneburg, Institute of Economics.
    4. Pfeifer, Christian, 2009. "An Intra-Firm Perspective on Wage Profiles and Employment of Older Workers with Special Reference to Human Capital and Deferred Compensation," Hannover Economic Papers (HEP) dp-413, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    5. Christian Pfeifer, 2015. "Effective working hours and wages: the case of downward adjustment via paid absenteeism," Economics Bulletin, AccessEcon, vol. 35(1), pages 612-626.
    6. Pfeifer, Christian & Sohr, Tatjana, 2008. "Analysing the Gender Wage Gap Using Personnel Records of a Large German Company," IZA Discussion Papers 3533, Institute for the Study of Labor (IZA).

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