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Managing careers in organizations

Ke, Rongzhu, Li, Jin and Powell, Michael (2018) Managing careers in organizations. Journal of Labor Economics, 36 (1). 197 - 252. ISSN 0734-306X

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Identification Number: 10.1086/693871


Firms’ organizational structures impose constraints on their ability to use promotion-based incentives. We develop a framework for identifying these constraints and exploring their consequences. We show that firms manage workers’ careers by choosing personnel policies that resemble an internal labor market. Firms may adopt forced-turnover policies to keep lines of advancement open, and they may alter their organizational structures to relax these constraints. This gives rise to a trade-off between incentive provision at the worker level and productive efficiency at the firm level. Our framework generates novel testable implications that connect firm-level characteristics with workers’ careers.

Item Type: Article
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Additional Information: © 2017 University of Chicago Press
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited: 10 Oct 2017 16:32
Last Modified: 13 Jun 2024 03:15

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