Ingrid Huitfeldt, "Internal Labor Markets: A Worker Flow Approach"

Job talk. Ingrid Huitfeldt is a researcher in the Research Department at Statistics Norway. She will present the paper "Internal Labor Markets: A Worker Flow Approach".

Photo of Ingrid Huitfeldt

Ingrid Huitfeldt

Abstract

This paper develops a new method to study how workers’ career and wage profiles are shaped by internal labor markets (ILM) and job hierarchies in firms. Our paper tackles the conceptual challenge of organizing jobs within firms into hierarchy levels by proposing a data-driven ranking method based on observed worker flows between occupations within firms. We apply our method to linked employer-employee data from Norway that record fine-grained occupational codes and tracks contract changes within firms. Our findings confirm existing evidence that is primarily based on case studies for single firms. We expand on this by documenting substantial heterogeneity in the structure and hierarchy of ILMs across a broad range of large firms. Our findings on wage and promotion dynamics in ILMs are consistent with models of careers in organizations.

Read the paper [pdf]

Host: Manudeep Bhuller

 

Published Jan. 11, 2022 12:40 PM - Last modified Feb. 4, 2022 9:18 AM