This paper studies the careers of top managers using a large panel of firms. The main objective is to empirically evaluate the role of learning and human capital acquisition in promotion dynamics along with variables capturing the formation of internal labour market (ILM) practices. We find that...

Two alternative relative compensation schemes are compared with respect to total output that can be generated at a given sum of salaries. While the promotion regime guarantees that any salary increase is permanent, the premium system allows a reduction in the income of an agent to the base...

This paper analyzes the personnel records of a Taiwanese auto dealer employing three distinct internal labor markets (ILMs), adding new evidence that builds upon recent empirical and theoretical works on ILMs. We find that the career mobility is different amongst different workers. The positive...

I use personnel records of a large German company to analyse the determinants of promotions from the perspective of tournament theory and efficient allocation of employees. Main findings are that less absenteeism, more overtime, longer contractual working time, higher education, higher entry...

The authors tested the influence of thirteen human resource management practices on voluntary turnover rates the following year while controlling for workplace size, the presence of a separate human resources management unit, union density, industry, and region. Analysis of data from 4,160...

In today’s hyper‐competitive markets, the most valuable asset and the primary source of competitive advantage is human capital. It is also the resource which is most difficult to maintain, for the ongoing war for talent depletes the human capital of companies that fail to meet their employee...

Corporations are trying to increase employee satisfaction to reduce the negative impact of the ongoing war for talent. Providing employees with internal job opportunities is a means of demonstrating that they can realize their career goals inside rather than outside of the company. This requires...

In this paper we show that subtle forms of deceit undermine the effectiveness of incentives.We design an experiment in which the principal has an interest in underreporting the trueperformance difference between the agents in a dynamic tournament...

On theoretical grounds, monitoring of top executives by the (supervisory) board is expectedto be value relevant. The empirical evidence is ambiguous and we analyze three noncompetingexplanations for this ambiguity: (i) The positive effect on firm value of boardmonitoring is hidden in stock price...

The Peter Principle captures two stylized facts about hierarchies: first, promotions often placeemployees into jobs for which they are less well suited than for that previously held. Second,demotions are extremely rare...