Internal labor markets and worker rents

Did European Labor Markets Become More Competitive in the 1990s? Evidence from Estimated Worker Rents

Did European Labor Markets Become More Competitive in the 1990s? Evidence from Estimated Worker Rents This paper analyses the evolution of quantitative measures of employee rents in Europe during the nineties, using the European Household Panel Survey. One looks at two class of measures: wage differentials between workers along industry and firm size dimensions, and estimated welfare difference...

Union Wages, Rents, and Skills in Health Care Labor Markets

This paper examines the effect of unions on the earnings of health care workers, with emphasis on the measurement and sources of union wage premiums. Using data constructed from the 1973 though 1994 Current Populations Surveys, standard union premium estimates are found to be substantially lower among health care workers than in other sectors of the economy, and to be smaller among higher skill...

Large Firms and Internal Labor Markets

This paper introduces a model of internal labor markets that is consistent with the observed differences between workers in large and small firms with respect to wages and separation rates. In particular, firms constitute labor markets with no search frictions. Workers are free to move within a firm at no cost, whereas switching across firms is costly. If the quality of a match between a worker...

Managers, Mentoring, and Internal Labor Markets

We propose a theory of production and allocation of human capital in firms that focuses on the role of line managers, who both invest time to mentor junior employees, and acquire information about the juniors’abilities that is valuable for job assignments. We argue that this dual role of managers implies that internal labor markets and incentive contracts for managers must be determined jointly...

Internal Labor Markets and Manpower Analysis