In the early stages of the process of industry evolution, firms are financially constrained and pay different wages because workers have heterogeneous expectations about the prospects for advancement offered by each firm's job ladder. This paper argues that, nevertheless, if the output market is...

We use a long panel data set for four entry cohorts into an internal labor market to analyze the effect of age on the probability to participate in different training measures. We find that training participation probabilities are inverted u-shaped with age and that longer training measures are...

Purpose – The purpose of this paper is to investigate empirically whether job assignment, based on comparative advantage and learning about workers’ abilities, can explain wage and promotion dynamics within firms. Design/methodology/approach – The Gibbons and Waldman model is estimated in...

In this paper, we study whether performance feedback can serve as an instrument for firms to increase employee retention. Feedback on the relative performance may affect individual job search behavior differently depending on workers' relative rank among their peers. In line with these...