in which a worker's status depends on past performance. We investigate the optimality of two types of promotion … hierarchies: (i) internal labor markets, in which agents have a job guarantee, and (ii) up-or-out, in which agents are fired when …

in which a worker's status depends on past performance. We investigate the optimality of two types of promotion … hierarchies: (i) internal labor markets, in which agents have a job guarantee, and (ii) "up-or-out", in which agents are fired …