Conferences at Department of Economics, University of Toronto, RCEF 2012: Cities, Open Economies, and Public Policy

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Experience, Education, and Internal Labor Markets: Intra-Firm Dynamics of Career and Wage under the Skill-biased Development

Masaki Nakabayashi

Last modified: 2012-07-10

Abstract


Contemporary major Japanese firms recruit new graduates and promote from within, providing a rare example of the “ports of entry” policy, and were once recognized as innovative organizations. This microanalysis of a steel company in the 1930-60s shows that 1) the internal labor market had been enhanced, but 2) mid-career recruiting was active and employees’ fertility decision depended on previous experience as well as tenure by the 1960s, while 3) the return on education surged and in-house training was linked to educational background from the 1950s, indicating that extended schooling replaced mid-career experience after the 1970s under technology-education complementarity.


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