Micro Conditions for Macro Models of Manpower Mobility

Abstract

This paper combines systems of micro and macro manpower accounts to link heterogeneous labor groups and employment opportunities within and across internal and external labor markets. The resulting framework is then used to construct a time-inhomogeneous model of social mobility in organizations in order to show how conditions in the external labor market affect advancement opportunities in the internal labor market and, vice-versa, the possible effect of conditions in the internal labor market on flows into and out of the external labor market. The model is then shown to converge to an equilibrium in which the aggregate manpower flow parameters become time-homogeneous.