On Some Questions on the Efficiencies in the Internal Labor Market

Under the market economic system, the labor market isnt a united one as said by the neo classical theory, but was segregated into some parts. If you take the border of firm as the watershed, you can divide labor market into two parts at least, the internal market and the external market. Internal labor market is a different institutional arrangement with the neo classical pattern and has the special operating mechanism and rational basis. This paper will inquire into some questions on efficiencies in internal labor market, such as the basis of the efficiencies, the restraint of it, and what lesson can be learn from the internal labor market experience during the reform of our employment system.