Labour Markets Example Essays (Volume 1) for A.
Internal labor markets are those where workers are hired into entry level jobs and higher levels are filled from within. Wages are determined internally and may be quite free of market pressure. External labor markets imply that workers move somewhat fluidly between firms and wages are determined by some aggregate process where firms do not have significant discretion over wage setting.NBER Program(s):Labor Studies. We decompose the real annual full time compensation costs of 1.1 million French workers followed over 12 years into a part that reflects their external opportunity wage and a part that reflects their internal wage rate.One defining characteristic of such an “internal labor market” is a company wage policy that diverges from that of the external market. These divergences may occur for an entire employer on average, or for a subset of occupations at an employer.
The system by which recruitment for senior appointments in an organization is mainly by open competition. It is contrasted with an internal labour market, in which senior posts are filled mainly by promoting existing employees in lower-grade jobs. The main merits of an external labour market are that open competition provides a wider choice for senior appointments, and that outsiders may bring.The internal labour market refers to that which exists within a single organisation and represents its internal supply or stock of labour. In its broadest sense, the internal labour market is the mechanism by which existing employees are attributed particular roles within a firm.
Inefficiency in Nigeria’s Labor Market. Labor and capital are the major input determinants of production in the economy. A high rate of Gross Domestic Product (GDP) may translate in to high employment since labor is a key determinant of production.
