Determinants of promotions in an internal labour market: testing implications from tournament theory and efficient allocation
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In: Schmalenbach Business Review, Vol. 62, No. 1, 2010, p. 342-358.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Determinants of promotions in an internal labour market
T2 - testing implications from tournament theory and efficient allocation
AU - Pfeifer, Christian
PY - 2010
Y1 - 2010
N2 - 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 age, and longer remaining tenure are correlated with a higher promotion probability, but female employees are less likely to get promoted. Surprisingly, the promotion probability is positively correlated only with less absenteeism and more overtime in the last three months before the promotion occurs. Explanations, why short-term performance seems to be more important in the promotion process than long-term performance, might be collusion among contestants, worker heterogeneity, and biased promotion decisions by supervisors.
AB - 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 age, and longer remaining tenure are correlated with a higher promotion probability, but female employees are less likely to get promoted. Surprisingly, the promotion probability is positively correlated only with less absenteeism and more overtime in the last three months before the promotion occurs. Explanations, why short-term performance seems to be more important in the promotion process than long-term performance, might be collusion among contestants, worker heterogeneity, and biased promotion decisions by supervisors.
KW - Economics
KW - Gender and Diversity
U2 - 10.1007/BF03396810
DO - 10.1007/BF03396810
M3 - Journal articles
VL - 62
SP - 342
EP - 358
JO - Schmalenbach Business Review
JF - Schmalenbach Business Review
SN - 1439-2917
IS - 1
ER -