Wages and Learning in Internal Labor Markets: Evidence From a Taiwanese Company

Lin Ming-Jen ()
Additional contact information
Lin Ming-Jen: Department of Economics, National Taiwan University
Authors registered in the RePEc Author Service: 明仁 林

The B.E. Journal of Economic Analysis & Policy, 2006, vol. 5, issue 1, 29

Abstract: This paper analyses the personnel records of a Taiwanese auto dealer employing three distinct internal labor markets (ILMs), adding new evidence that builds upon recent empirical and theoretical works on ILMs. We show that the public learning model proposed by Farber and Gibbons (1996) is not supported in general by our data because the behaviors of empirical wage residuals covariance matrix contradict the martingale predictions derived from the their model. However, "public learning" may not be unrealistic once individual specific learning speed is introduced. Furthermore, we find that the positive effects of levels, on both salary and bonus equations, are smaller under a fixed effects model than under an OLS (combined) model. However, part of the wage variations is contributed by individual heterogeneity rather than the hierarchy itself. Evidence also shows that education plays an important role in the determination of levels.

Keywords: Internal Labor markets; wage; bonus; education; learning. (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2202/1538-0645.1370 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: Wages and Learning in Internal Labor Markets: Evidence From a Taiwanese Company (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejeap:v:5:y:2006:i:1:p:29:n:1035

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejeap/html

DOI: 10.2202/1538-0645.1370

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().