The recruitment and training of a firm's existing employees for more skilled positions within the firm was a widespread practice in U.S. firms at the turn of the century. Promotion ladders, although informal, provided a substantial number of employees with careers at a single firm. Evidence on internal recruitment from a New York State Bureau of Labor Statistics study early in the 20th century shows that promotion of workers was more likely in larger establishments and establishments employing a higher proportion of semiskilled operatives. Some plausible reasons for this pattern are discussed. © 1988.
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