Wages in and voluntary quits from an establishment internal labour market

$53.17 plus tax (Refund Policy)

Buy Article:


This paper analyses wage rates in and quit rates from two production departments in an establishment based structured internal labour market in which labour allocation between grades and the wage rate of these grades are managerially determined. First, it is assumed that management makes effective use of the 'private' information about individual employees collected through time, proxied by tenure, to allocate them to the most appropriate tasks. However, in an OLS regression the elasticity of the wage rate with respect to tenure, although statistically significant, is not economically important. Further, it is assumed that this labour allocation process together with the wage structure will facilitate labour retention. However, in a probit model analysing the quit probability, the probability of quitting increases with the wage rate. Both results are compatible with an internal labour market labour allocation process and wage structure that is not competitive with wage rates prevailing in the external labour market.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840110053234

Publication date: February 15, 2002

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more