Internal hiring or external recruitment

  title={Internal hiring or external recruitment},
  author={Jed DeVaro},
  journal={The IZA World of Labor},
  • Jed DeVaro
  • Published 20 May 2020
  • Business
  • The IZA World of Labor
Hiring is one of a firm’s most important decisions. When an employer fills a vacancy with one of its own workers (through promotion or lateral transfer), it forgoes the opportunity to fill the position with a new hire from outside the firm. Although both internal and external hiring methods are used, firms frequently have a bias favoring insiders. Internal and external hires differ in observable characteristics (such as skill levels), as do the employers making each type of hiring decision… 

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