The Reproduction of Managerial Styles in an Internal Labor Market

Yusuke Makino and Shintaro Yamaguchi ()
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Yusuke Makino: University of Tokyo
Shintaro Yamaguchi: University of Tokyo

No 19023, IZA Discussion Papers from IZA Network @ LISER

Abstract: Why do managerial styles persist even when managers turn over? Using personnel records from a large Japanese manufacturer, we estimate manager fixed effects on subordinates’ overtime hours as a measure of managerial style. Before promotion, some managers worked under supervisors who demanded more overtime from their subordinates. These managers later tend to demand more overtime from their own subordinates, and our evidence supports the interpretation that managers learn styles from former supervisors. Moreover, the firm repeatedly assigns managers with similar styles to the same sections, sustaining section-level persistence. Together, these processes reproduce managerial styles within an internal labor market.

Keywords: manager effects; managerial style; internal labor markets; organizational persistence; working hours (search for similar items in EconPapers)
JEL-codes: D23 M12 M14 M51 M54 (search for similar items in EconPapers)
Date: 2026-10
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