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Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers

Author

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  • Thomas J. Dohmen
  • Ben Kriechel
  • Gerard A. Pfann

Abstract

This paper compares results from the empirical literature on internal labor markets with outcomes from analyzing personnel data of the Dutch aircraft manufacturer Fokker. It sheds light on differences in the functioning of internal labor markets between periods of workforce growth and decline. Despite substantial variation in individual wages, careers are important as wages are strongly related to job levels. Promotion rates fall and demotion rates rise when the firm enters the stage of demise. Vertical and lateral job mobility are important in internal labor market careers as they stimulate wage growth and reduce the lay-off risk. Copyright Springer-Verlag 2004

Suggested Citation

  • Thomas J. Dohmen & Ben Kriechel & Gerard A. Pfann, 2004. "Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(2), pages 193-228, June.
    • Handle: RePEc:spr:jopoec:v:17:y:2004:i:2:p:193-228
    DOI: 10.1007/s00148-004-0191-4
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    Keywords

    Internal labor markets; human resource management; personnel economics; M51; J31; J41;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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