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Internal Promotion Versus External Recruitment: Evidence in Industrial Plants

Author

Listed:
  • Alberto Bayo-Moriones

    (Departamento de Gestión de Empresas Universidad Pública de Navarra.)

  • Pedro Ortín-Ángel

    (Departament d'Economia de l'Empresa Universitat Autònoma de Barcelona)

Abstract
An analysis is carried out in a sample of 738 industrial plants of the determining factors in the use of internal promotion of blue-collar workers to middle managers and skilled technicians asagainst their external recruitment. The use of internal promotion is positively correlated with variables indicative of the efforts made by plants to measure employees' skills, and to a lesser extent, with the level of specificity of investments in human capital made by blue-collar workers. Contrary to what was expected, variables related with the use and efficiency of other incentive systems have no significant influence on the increased or decreased use of internal promotion. These results are initial evidence that internal promotions are used to protect and favour specific investments, especially those made by firms in order to discover their workers'skills.

Suggested Citation

  • Alberto Bayo-Moriones & Pedro Ortín-Ángel, 2003. "Internal Promotion Versus External Recruitment: Evidence in Industrial Plants," Working Papers 0303, Departament Empresa, Universitat Autònoma de Barcelona, revised Mar 2003.
    • Handle: RePEc:bbe:wpaper:0303
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    References listed on IDEAS

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    Cited by:

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    2. Fibla Gasparín, Ma. Teresa, 2010. "Staffing strategies in SME's: determinants of external recruitment and internal promotion," Working Papers 2072/179603, Universitat Rovira i Virgili, Department of Economics.
    3. Mañé Vernet, Ferran & Benner, Chris, 2009. "Dead-End Jobs or Career Opportunities? Advancement opportunities in call centers," Working Papers 2072/42870, Universitat Rovira i Virgili, Department of Economics.
    4. Jed DeVaro, 2020. "Internal hiring or external recruitment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 237-237, May.
    5. Timothy N. Bondtn, 2017. "Internal Labor Markets in Equilibrium," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 33(1), pages 28-67.
    6. Jed DeVaro & Hodaka Morita, 2013. "Internal Promotion and External Recruitment: A Theoretical and Empirical Analysis," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 227-269.
    7. Magdalena Kalinska-Kula & Iwona Staniec, 2021. "Employer Branding and Organizational Attractiveness: Current Employees’ Perspective," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 583-603.

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