Asymmetric information in external versus internal promotions

Mario Bossler and Philipp Grunau
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Philipp Grunau: Institute for Employment Research (IAB), Nuremberg, Germany

No 201611, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Individuals have two possible channels through which to obtain a managerial position: external and internal promotions. Employing the revised German Employment Register, we compare external and internal promotions by using multinomial logit regressions while accounting for workplace heterogeneity. Individual characteristics are hypothesized to exert differential effects because of their observability within and across workplaces. We find that actual working hours are a more important source of information for internal versus external promotions. By contrast, formal vocational degrees and initial job task complexity, which are also externally observed, are a relatively more important signal for external promotions. Consistent with statistical discrimination, women and foreigners face a more pronounced disadvantage in external promotions. For women, this differential effect is fully driven by promotions to executive positions characterized by high task complexity. Moreover, actual working hours show a strong positive interaction effect on women's prospects of promotion." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Ausländer; Beförderung; berufliche Qualifikation; beruflicher Aufstieg; Berufsnachwuchs; Beschäftigtenstatistik; Determinanten; Entscheidungsfindung; Frauen; Führungskräfte; interner Arbeitsmarkt; Personalauswahl; Tätigkeitsmerkmale; zwischenbetriebliche Mobilität; Arbeitszeit (search for similar items in EconPapers)
JEL-codes: J41 J70 M12 M51 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2016
New Economics Papers: this item is included in nep-hrm and nep-lma
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Citations: View citations in EconPapers (3)

Published in/as: Empirical economics, (im Erscheinen), doi:10.1007/s00181-019-01749-7

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Journal Article: Asymmetric information in external versus internal promotions (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201611

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