An empirical note on wages in an internal labour market
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.
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- Baker, George & Gibbs, Michael & Holmstrom, Bengt, 1994. "The Internal Economics of the Firm: Evidence from Personnel Data," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 881-919, November.
- 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.
- 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.
- 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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