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A theory of Careers in Hierarchical Internal Labor Markets

Author

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  • Dohmen, Thomas J

    (IZA)

Abstract

The paper develops a model that explains a broad pattern of evidence on careers in multilevel organizations. It shows how job mobility inside firms depends on changes in the size of the organization. Promotion rates rise (fall) during a corporate expansion (contraction). Economic conditions therefore affect individual career mobility and earnings profiles. The model analyzes how the interaction between human capital accumulation and learning impacts on the assignment of workers to jobs at different levels of authority in the corporate hierarchy. The model makes predictions about the timing of the provision of formal training.

Suggested Citation

  • Dohmen, Thomas J, 2003. "A theory of Careers in Hierarchical Internal Labor Markets," Royal Economic Society Annual Conference 2003 64, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:64
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    Cited by:

    1. Marco Herpen & Mirjam Praag & Kees Cools, 2005. "The Effects of Performance Measurement and Compensation on Motivation: An Empirical Study," De Economist, Springer, vol. 153(3), pages 303-329, September.

    More about this item

    Keywords

    career mobility; learning; sorting job assignment;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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