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Empirical analysis of up-or-out rules for promotion policies

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  • Rosemary Walker

Abstract

Previous research in the areas of tournaments, human capital, and learning theory have shown that promotion is a function of human capital, experience, ability, and wage growth. These variables were used to estimate a Cox regression using data from a single firm. The survival rates for a Cox regression and an up-or-out regression model are computed. The results suggest that certain up-or-out models are valid even when the firm does not have such a policy and show that an up-or-out procedure predicts the promotion and exit survival rates as well as a Cox regression. Copyright Springer 2005

Suggested Citation

  • Rosemary Walker, 2005. "Empirical analysis of up-or-out rules for promotion policies," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 29(2), pages 172-186, June.
    • Handle: RePEc:spr:jecfin:v:29:y:2005:i:2:p:172-186
    DOI: 10.1007/BF02761552
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    Cited by:

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    2. Englmaier, Florian & Muehlheusser, Gerd & Roider, Andreas, 2014. "Optimal incentive contracts for knowledge workers," European Economic Review, Elsevier, vol. 67(C), pages 82-106.

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