Hiring, Pay, Promotion and Job Security in an Internal Labor Market: Evidence from the Union Bank of Australia
This paper uses the personnel and payroll records of the Union Bank of Australia to examine its personnel policies. It is shown that the bank maintained all of the classic internal labor market features described by Doeringer and Priore and others. There were restrictions on ports of entry; internal promotion was preferred to external hiring; there was a long-term relationship between the bank and its employees, frequently lasting the entire career; the bank maintained rigid, impersonal rules concerning pay raises; wages and employment were shielded from the external labor market; and tenure was more important than outside experience or current productivity in determining wages. Finally, it is shown that neither unions or public policy provided the impetus for the bank to adopt an internal labor market, rather it was designed to mitigate agency problems, reduce turnover, and screen employees.
|Date of creation:||Feb 1998|
|Date of revision:||Feb 1998|
|Contact details of provider:|| Postal: Egham Hill, Egham, Surrey, TW20 0EX, UK.|
Phone: +44 1784-414228
Fax: +44 1784-439534
Web page: http://www.rhul.ac.uk/economics/
|Order Information:|| Postal: Egham Hill, Egham, Surrey, TW20 0EX, UK.|
When requesting a correction, please mention this item's handle: RePEc:hol:holodi:9805. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claire Blackman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.