Tenure, skill development, and pay: The role of internal labour markets

Abstract

This chapter examines the approaches that firms take towards recruitment, skill development and pay. These are some of the most central elements of the firm’s employment system, and go some considerable way towards determining the shape of employees’ careers. The chapter shows that there is substantial heterogeneity in both countries, with workplaces in both countries having a strong orientation towards the promotion of internal labour markets (ILMs). However, in line with previous literature, we find that these orientations are more prevalent, on average, in France.