Empirical analysis of up-or-out rules for promotion policies

Rosemary Walker ()

Journal of Economics and Finance, 2005, vol. 29, issue 2, 172-186

Abstract: Previous research in the areas of tournaments, human capital, and learning theory have shown that promotion is a function of human capital, experience, ability, and wage growth. These variables were used to estimate a Cox regression using data from a single firm. The survival rates for a Cox regression and an up-or-out regression model are computed. The results suggest that certain up-or-out models are valid even when the firm does not have such a policy and show that an up-or-out procedure predicts the promotion and exit survival rates as well as a Cox regression. Copyright Springer 2005

Date: 2005
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DOI: 10.1007/BF02761552

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