The Impact of Job Similarity Along the Career Path on the Firm's Promotion Strategy

40 Pages Posted: 18 Aug 2017 Last revised: 2 Oct 2021

See all articles by Jakob Infuehr

Jakob Infuehr

University of Southern Denmark

Sebastian Kronenberger

University of Mannheim

Date Written: October 1, 2021

Abstract

Firms use job promotions to incentivize hard work from low-level employees and to sort employees according to their skills. Since these two functions are often in conflict, a firm's promotion strategy tries to balance them. Our model extends prior research by identifying job similarity between current and future job as a driver of a firm's promotion strategy. Depending on organizational and labor market characteristics, similar jobs can increase or decrease the chances for careers within a single firm. The results help to explain why firms with different structures or from different industries use different promotion strategies.

Keywords: Promotion, Job Similarity, Organizational Design

JEL Classification: J31, M51, D86

Suggested Citation

Infuehr, Jakob and Kronenberger, Sebastian, The Impact of Job Similarity Along the Career Path on the Firm's Promotion Strategy (October 1, 2021). AAA 2018 Management Accounting Section (MAS) Meeting, Available at SSRN: https://ssrn.com/abstract=3020977 or http://dx.doi.org/10.2139/ssrn.3020977

Jakob Infuehr (Contact Author)

University of Southern Denmark ( email )

Odense, 5230
Denmark

Sebastian Kronenberger

University of Mannheim ( email )

Mannheim, 68161
Germany

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