Educational Affiliations and Intra-Organizational Allocations of Labor

Abstract

Labor markets research documents how educational credentials shape inter-organizational allocations of labor through the matching of individuals to employers. We argue that educational credentials also shape intra-organizational allocations by affecting the placement of employees into formal work structure. This core proposition is supported by analyses of data from the U.S. legal services industry. First, an industry-level analysis of large law firms reveals that two lawyers who graduated from the same law school are more likely to be allocated to the same work group than two lawyers who graduated from different law schools. Second, an analysis of a single, international law firm reveals that two lawyers who graduated from the same law school are more likely to be allocated to the same hierarchical work relationship than two lawyers who graduated from different law schools. Implications of our findings for literature on networks, labor markets, and social stratification are discussed.