Internallabourmarketspromotionladders.pptVIP

Internal labour markets promotion ladders Internal labour markets (ILM) Predictions of ILM theory The assignment problem Asymmetric information Promotion tournaments 1. ILM versus competitive market Competitive pay determined by market forces pay = MPL= f(worker characteristic) Relative pay (in firm) = relative pay (market) Practice Pay rises at intervals - scale - seniority, length of service Internal promotion ILM (cont.) ILM - subject to different forces Dual, or segmented, labour market Primary LM v. secondary LM Type of worker Mobility ILM similar to ‘primary’ sector ‘Career labour