Careers and productivity in an internal labor market
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In: Journal of Business Economics : JBE, Vol. 83, No. 2, 01.02.2013, p. 121-143.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Careers and productivity in an internal labor market
AU - Yang, Phillip
AU - Janssen, Simon
AU - Pfeifer, Christian
AU - Backes-Gellner, Uschi
PY - 2013/2/1
Y1 - 2013/2/1
N2 - This paper contributes to the existing literature by evaluating the effects of age and tenure on careers and productivity within an internal labor market. We use the administrative personnel records of a long balanced panel of blue-collar workers from a manufacturing firm in Germany with a distinct classification of wage groups and unique information on workers’ productivity in form of suggestions for productivity improvement. Using robust locally weighted regression, our main findings suggest that the probability of promotion is highest for younger workers and early in the career. Older workers are less likely to be promoted. The likelihood of making a rewarded suggestion is inversely u-shaped with respect to tenure and age. Furthermore, workers’ ability and firm-specific human capital determine the workers’ careers and productivity.
AB - This paper contributes to the existing literature by evaluating the effects of age and tenure on careers and productivity within an internal labor market. We use the administrative personnel records of a long balanced panel of blue-collar workers from a manufacturing firm in Germany with a distinct classification of wage groups and unique information on workers’ productivity in form of suggestions for productivity improvement. Using robust locally weighted regression, our main findings suggest that the probability of promotion is highest for younger workers and early in the career. Older workers are less likely to be promoted. The likelihood of making a rewarded suggestion is inversely u-shaped with respect to tenure and age. Furthermore, workers’ ability and firm-specific human capital determine the workers’ careers and productivity.
KW - Economics
KW - Human capital
KW - Internal labor markets
KW - Personnel economics
KW - Productivity
KW - Promotions
UR - http://www.scopus.com/inward/record.url?scp=85026995755&partnerID=8YFLogxK
U2 - 10.1007/s11573-012-0649-x
DO - 10.1007/s11573-012-0649-x
M3 - Journal articles
VL - 83
SP - 121
EP - 143
JO - Journal of Business Economics : JBE
JF - Journal of Business Economics : JBE
SN - 0044-2372
IS - 2
ER -