The Careers of Top Managers and Firm Openness: Internal Versus External Labour Markets

Francisco Lima
Authors registered in the RePEc Author Service: Mário Centeno ()

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: This paper studies the careers of top managers using a large panel of firms. The main objective is to empirically evaluate the role of learning and human capital acquisition in promotion dynamics along with variables capturing the formation of internal labour market (ILM) practices. We find that promotion is negatively correlated with tenure, but that there is a non-linear negative duration dependence with elapsed time since the last promotion event. Firms showing a weaker degree of ILM are less prone to promote insiders. We next take the manager's career inside a firm as a sequence of promotion decisions, and use a nested structure of the promotion decision modelled as a nested logit model. Results show that the top manager's progression nest into four types: loser, early starter, late beginner, and champion, and that the degree of ILM as a signigicant impact on the process of learning inside the firm.

JEL-codes: J41 M12 M51 (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.bportugal.pt/sites/default/files/anexos/papers/wp200315.pdf

Related works:
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:ptu:wpaper:w200315

Access Statistics for this paper

More papers in Working Papers from Banco de Portugal, Economics and Research Department Contact information at EDIRC.
Bibliographic data for series maintained by DEE-NTD ().