 Internal labor markets and corporate innovation: Evidence from Korean chaebolsKyounghun Lee, Frederick Dongchuhl Oh, Donglim Shin and Heejin Yoon International Review of Economics & Finance, 2023, vol. 85, issue C, 146-162 Abstract: This study investigates the effect of internal labor markets (ILMs) on corporate innovation, focusing on Korean chaebols. Prior to examining the effect of ILMs, we confirm their efficiency, finding that chaebol firms with lower (higher) growth opportunity exhibit higher (lower) subsequent labor outflows. Further, ILM efficiency is more pronounced for firms within a more diversified chaebol, those whose controlling shareholder has lower equity stakes, and during a financial crisis period. We then investigate the effect of ILMs on innovation. We find that ILM efficiency leads affiliated firms to show greater innovative performance. Moreover, this positive influence is more pronounced for firms that receive internal capital. Overall, our study suggests the importance of ILMs in promoting corporate innovation among group firms. (JEL G30, J40, L22, O33). Keywords: Internal labor market; Corporate innovation; Business group; Chaebol (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:85:y:2023:i:c:p:146-162 DOI: 10.1016/j.iref.2023.01.019 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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