Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

The Internal Economics of the Firm: Evidence from Personnel Data

George Baker, Michael Gibbs and Bengt Holmstrom
The Quarterly Journal of Economics
Vol. 109, No. 4 (Nov., 1994), pp. 881-919
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/2118351
Page Count: 39
  • Get Access
  • Download ($42.00)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
The Internal Economics of the Firm: Evidence from Personnel Data
Preview not available

Abstract

We analyze twenty years of personnel data from one firm. The hierarchical structure is quite simple and stable. Career movements suggest that the employee's rate of learning and the firm's learning about ability are important. There are promotion "fast tracks." Exit rates vary little with tenure or salary. The firm has personnel policies like those described in the internal labor markets literature, although several theoretical preconditions for ILMs, such as ports of entry and exit, are lacking. Job levels are important to compensation, but there is also substantial individual variation in pay within levels. Our companion paper (in this issue) explores the wage policy of this firm.

Page Thumbnails

  • Thumbnail: Page 
[881]
    [881]
  • Thumbnail: Page 
882
    882
  • Thumbnail: Page 
883
    883
  • Thumbnail: Page 
884
    884
  • Thumbnail: Page 
885
    885
  • Thumbnail: Page 
886
    886
  • Thumbnail: Page 
887
    887
  • Thumbnail: Page 
888
    888
  • Thumbnail: Page 
889
    889
  • Thumbnail: Page 
890
    890
  • Thumbnail: Page 
891
    891
  • Thumbnail: Page 
[892]
    [892]
  • Thumbnail: Page 
893
    893
  • Thumbnail: Page 
894
    894
  • Thumbnail: Page 
895
    895
  • Thumbnail: Page 
896
    896
  • Thumbnail: Page 
897
    897
  • Thumbnail: Page 
898
    898
  • Thumbnail: Page 
899
    899
  • Thumbnail: Page 
900
    900
  • Thumbnail: Page 
901
    901
  • Thumbnail: Page 
902
    902
  • Thumbnail: Page 
903
    903
  • Thumbnail: Page 
904
    904
  • Thumbnail: Page 
905
    905
  • Thumbnail: Page 
[906]
    [906]
  • Thumbnail: Page 
907
    907
  • Thumbnail: Page 
908
    908
  • Thumbnail: Page 
909
    909
  • Thumbnail: Page 
910
    910
  • Thumbnail: Page 
911
    911
  • Thumbnail: Page 
912
    912
  • Thumbnail: Page 
913
    913
  • Thumbnail: Page 
914
    914
  • Thumbnail: Page 
915
    915
  • Thumbnail: Page 
916
    916
  • Thumbnail: Page 
917
    917
  • Thumbnail: Page 
918
    918
  • Thumbnail: Page 
919
    919