Labor Market Advantages of Organizational Status: : A Study of Lateral Partner Hiring by Large U.S. Law Firms

• Autores: Christopher I. Rider, David Tan
• Localización: Organization Science, ISSN-e 1526-5455, Vol. 26, Nº. 2, 2015, págs. 356-372
• Idioma: inglés
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• Resumen

  • Prior research demonstrates product market advantages of organizational status but largely neglects factor market advantages. We propose that status is advantageous in labor markets because individuals generally consider employer status a nonpecuniary employment benefit. Dyadic analyses of lateral partner hiring by large U.S. law firms demonstrate two status-based advantages in employee hiring and retention. First, high-status firms are more likely than low-status ones to hire an employee from a more profitable competitor. Second, high-status firms are most likely to lose an employee to a lower-status competitor when the competitor is—atypically—more profitable. We discuss implications of these findings for individual and organizational status attainment and for the stability of industry status hierarchies.