This paper studies the careers of top managers using a large panel of firms. The main objective is to empirically evaluate the role of learning and human capital acquisition in promotion dynamics along with variables capturing the formation of internal labour market (ILM) practices. We find that...

Two alternative relative compensation schemes are compared with respect to total output that can be generated at a given sum of salaries. While the promotion regime guarantees that any salary increase is permanent, the premium system allows a reduction in the income of an agent to the base...

This paper analyzes the personnel records of a Taiwanese auto dealer employing three distinct internal labor markets (ILMs), adding new evidence that builds upon recent empirical and theoretical works on ILMs. We find that the career mobility is different amongst different workers. The positive...

I use personnel records of a large German company to analyse the determinants of promotions from the perspective of tournament theory and efficient allocation of employees. Main findings are that less absenteeism, more overtime, longer contractual working time, higher education, higher entry...

The authors tested the influence of thirteen human resource management practices on voluntary turnover rates the following year while controlling for workplace size, the presence of a separate human resources management unit, union density, industry, and region. Analysis of data from 4,160...

This paper investigates differences in worker turnover characteristics between periods of workforce expansion and contraction in a firm. We derive a Cox proportional hazard model from a simple model of job separation based on the expected surpluses from the firm and its workers. We account for...

The paper analyzes the contemporary organizational restructuring of production and work within firms. We emphasize the shift from a "Tayloristicʺ organization of work (characterized by significant specialization by tasks) to a "holisticʺ organization (featuring job rotation, integration of...

The relationship between the worker's career path and wage growth is studied using a longitudinal sample of large firms. The econometric analysis shows that promoted workers receive a positive wage premium even if they stay in the same job level. Demotions are associated with negative wage...

Using the concept of Inequity Aversion we derive in a Moral Hazard setting several results which differ from conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal contracts. Second, there is a strong tendency towards...