The Internal Labor Markets of Business Groups

M Larrain (), C Huneeus, F Huneeus, B Larrain and Mounu Prem
Authors registered in the RePEc Author Service: Federico Huneeus and Mauricio Larrain

No 17619, Documentos de Trabajo from Universidad del Rosario

Abstract: This paper provides novel micro evidence of labor mobility inside business groups. We show that worker flows between group firms are significantly more prevalent than between unaffiliated firms. We also find that groups respond to changing business conditions by reallocating top-occupation workers across affiliated firms. The wages of top workers increase as they move within the group. Internal labor reallocation is stronger when the worker’s origin firm controls the destination firm and in more complex hierarchical structures. Our results are consistent with the hypothesis that groups ease the transfer of intangible inputs, such as management practices, across firms.

Keywords: Internal labor markets; business groups; ownership; intangible inputs (search for similar items in EconPapers)
JEL-codes: G32 J60 (search for similar items in EconPapers)
Pages: 60
Date: 2019-11-19
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The internal labor markets of business groups (2021)
Working Paper: The Internal Labor Markets of Business Groups (2021)
Working Paper: The Internal Labor Markets of Business Groups (2021)
Working Paper: The Internal Labor Markets of Business Groups (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000092:017619

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