An empirical note on wages in an internal labour market

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Earnings functions are estimated using personnel data of a German company. Results support a positive correlation between human capital, hierarchical levels, promotions, and wages. Moreover, promoted and newly hired employees start at the bottom of a level's wage distribution.
Original languageEnglish
JournalEconomics Letters
Volume99
Issue number3
Pages (from-to)570-573
Number of pages4
ISSN0165-1765
DOIs
Publication statusPublished - 01.06.2008
Externally publishedYes

Bibliographical note

Funding Information:
I would like to thank Knut Gerlach, the seminar participants at the University of Zurich, and an anonymous referee for helpful comments. Financial support from the Fritz Thyssen Foundation is gratefully acknowledged.

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