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Aims to extend internal labour market theory by identifying sub‐markets that influence administrative staffing decisions, and to test a theoretical model regarding the role of sub‐markets in explaining decisions to hire or promote. Hypothesizes that two latent dimensions(hierarchical and functional) of labour markets would explain these decisions. Analyses data from personnel records for position vacancies in a major university for three years 1982‐85 (n = 840), and confirms the fit of the theoretical model. Staffing decisions are directly influenced by characteristics associated with the sub‐markets of the position.

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