According to the previous literature on hiring, ?rms face a trade-off when deciding on external recruiting: From an … incentive perspective, external recruiting is harmful since admission of external candidates reduces internal workers’ career … same product market, weaker ?rms use external recruiting and their wage policy to offset their competitive disadvantage. …

disadvantage. -- Contest ; externalities ; recruiting ; wage policy …According to the previous literature on hiring, firms face a trade-off when deciding on external recruiting: From an … incentive perspective, external recruiting is harmful since admission of external candidates reduces internal workers’ career …