Contemporary Japanese firms recruit new graduates and promote from within, providing a rare example of the 'ports of entry' policy. This microanalysis of the steel industry in the 1930-60s shows that the internal labor market had been continuously enhanced after the 1930s, but mid-career...

The impact of schooling on wages decreases as employers learn about workers' abilities from their experience. While this employer learning often proceeds asymmetrically between incumbent and entrant employers, large firms' internal labor markets could satisfy the statistical assumption of the...