Wages and Promotions in Internal Labor Markets
Resource
經濟論文叢刊, 33(1), 059-096
Journal
經濟論文叢刊
Journal Volume
33
Journal Issue
1
Pages
059-096
Date Issued
2005-03
Date
2005-03
Author(s)
Lin, M.J.
Abstract
In this paper, an internal dataset for a Taiwanese firm is analyzed. Job title, authority level, and the hierarchical structure chart of the company are used to identify levels. It is found that job transition paths are steady during periods of growth and stagnant. However, demotions are not rare (2%-8% per year). Levels are positively correlated with compensation, but overlap in compensation exists both within and between levels. The level coefficients of the fixed effect model of compensation are much smaller than the OLS results, suggesting that innate ability is correlated with levels and that evidence supporting tournament theory weak. Furthermore, year dummy variables are a set of significant coefficients on explaining compensation. Ports of entry and exit exist, and they are concentrated in the lower levels of the hierarchy. Overall, we find that internal labor markets, the traditional human capital, and the business cycle all affect individual wages.
Subjects
內部勞動市場
升遷矩陣
層級
薪資
Internal Labor Markets
Transition Matrix
Level
Wage
Type
journal article