How Internal Hiring Affects Occupational Stratification

<jats:title>Abstract</jats:title> <jats:p>When employers conduct more internal hiring, does this facilitate upward mobility for low-paid workers or does it protect the already advantaged? To assess the effect of within-employer job mobility on occupational stratific...

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Main Authors: Wilmers, Nathan, Kimball, William
Other Authors: Sloan School of Management
Format: Article
Language:English
Published: Oxford University Press (OUP) 2022
Online Access:https://hdl.handle.net/1721.1/144384
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author Wilmers, Nathan
Kimball, William
author2 Sloan School of Management
author_facet Sloan School of Management
Wilmers, Nathan
Kimball, William
author_sort Wilmers, Nathan
collection MIT
description <jats:title>Abstract</jats:title> <jats:p>When employers conduct more internal hiring, does this facilitate upward mobility for low-paid workers or does it protect the already advantaged? To assess the effect of within-employer job mobility on occupational stratification, we develop a framework that accounts for inequality in both rates and payoffs of job changing. Internal hiring facilitates advancement for workers without strong credentials, but it excludes workers at employers with few good jobs to advance into. Analyzing Current Population Survey data, we find that when internal hiring increases in a local labor market, it facilitates upward mobility less than when external hiring increases. When workers in low-paid occupations switch jobs, they benefit more from switching employers than from moving jobs within the same employer. One-third of this difference is due to low-paid workers isolated in industries with few high-paying jobs to transfer into. An occupationally segregated labor market therefore limits the benefits that internal hiring can bring to the workers who most need upward mobility.</jats:p>
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spelling mit-1721.1/1443842023-06-12T17:40:47Z How Internal Hiring Affects Occupational Stratification Wilmers, Nathan Kimball, William Sloan School of Management <jats:title>Abstract</jats:title> <jats:p>When employers conduct more internal hiring, does this facilitate upward mobility for low-paid workers or does it protect the already advantaged? To assess the effect of within-employer job mobility on occupational stratification, we develop a framework that accounts for inequality in both rates and payoffs of job changing. Internal hiring facilitates advancement for workers without strong credentials, but it excludes workers at employers with few good jobs to advance into. Analyzing Current Population Survey data, we find that when internal hiring increases in a local labor market, it facilitates upward mobility less than when external hiring increases. When workers in low-paid occupations switch jobs, they benefit more from switching employers than from moving jobs within the same employer. One-third of this difference is due to low-paid workers isolated in industries with few high-paying jobs to transfer into. An occupationally segregated labor market therefore limits the benefits that internal hiring can bring to the workers who most need upward mobility.</jats:p> 2022-08-19T17:01:13Z 2022-08-19T17:01:13Z 2021 2022-08-19T16:54:45Z Article http://purl.org/eprint/type/JournalArticle https://hdl.handle.net/1721.1/144384 Wilmers, Nathan and Kimball, William. 2021. "How Internal Hiring Affects Occupational Stratification." Social Forces, 101 (1). en 10.1093/SF/SOAB131 Social Forces Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Oxford University Press (OUP) Prof. Nathan Wilmers
spellingShingle Wilmers, Nathan
Kimball, William
How Internal Hiring Affects Occupational Stratification
title How Internal Hiring Affects Occupational Stratification
title_full How Internal Hiring Affects Occupational Stratification
title_fullStr How Internal Hiring Affects Occupational Stratification
title_full_unstemmed How Internal Hiring Affects Occupational Stratification
title_short How Internal Hiring Affects Occupational Stratification
title_sort how internal hiring affects occupational stratification
url https://hdl.handle.net/1721.1/144384
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