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The Reproduction of Managerial Styles in an Internal Labor Market

Author

Listed:
  • Makino, Yusuke

    (University of Tokyo)

  • Yamaguchi, Shintaro

    (University of Tokyo)

Abstract

Why do managerial styles persist even when managers turn over? Using personnel records from a large Japanese manufacturer, we estimate manager fixed effects on subordinates’ overtime hours as a measure of managerial style. Before promotion, some managers worked under supervisors who demanded more overtime from their subordinates. These managers later tend to demand more overtime from their own subordinates, and our evidence supports the interpretation that managers learn styles from former supervisors. Moreover, the firm repeatedly assigns managers with similar styles to the same sections, sustaining section-level persistence. Together, these processes reproduce managerial styles within an internal labor market.

Suggested Citation

  • Makino, Yusuke & Yamaguchi, Shintaro, 2026. "The Reproduction of Managerial Styles in an Internal Labor Market," IZA Discussion Papers 19023, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp19023
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    Keywords

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    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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