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Experiments on internal promotion and external hiring

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posted on 2022-11-18, 00:15 authored by Michal Ďuriník

The submitted thesis “Experiments on Internal Promotion and External Hiring” investigates the role of group identity as a factor in the Employer’s decision to promote an internal candidate or to hire an external candidate for a vacant position. In a series of three novel economic laboratory experiments, this thesis investigates the role of group identity in isolation and extends the scarce literature on post-promotion effort of Workers. Furthermore, the thesis makes a methodological contribution with regards to the framing of experiments. Study 1 finds the most Employers to consider their own earnings first and to favor in-group candidates only if this is not costly to them. Study 2 demonstrates an increase in experimental control when instructions contextually relevant to the labor market are used instead of neutrally framed instructions. Study 3 shows the Employers to have higher effort expectations from the in-group Workers and to promote accordingly. There is, however, no significant difference between the effort provided by the promoted in-group Workers and the promoted out-group Workers. The role of participants' beliefs is discussed for all three studies, as are the managerial and policy implications of the results.


Table of Contents

Introduction -- 1. Study 1 Suppressing in-group favoritism with personal incentives -- 2 Study 2 Increasing experimental control with contextually relevant framing -- 3 Study 3 The role of effort and effort expectations -- Conclusions – References -- List of tables – List of figures -- List of appendices


In fulfillment of the requirements for the cotutelle degree of Doctor of Philosophy in the subject of Economics Cotutelle thesis with Masaryk University, Brno, Czech Republic

Awarding Institution

Macquarie University

Degree Type

Thesis PhD


Thesis (PhD), Macquarie Graduate School of Management, Faculty of Business and Economics, Macquarie University

Department, Centre or School

Macquarie Graduate School of Management

Year of Award


Principal Supervisor

Maroš Servátka

Additional Supervisor 1

Lyla Zhang

Additional Supervisor 2

Radoslav Škapa


Copyright: The Author Copyright disclaimer:




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