In this paper a theory of the earnings attainment process is formalized. This theory conceives of the attainment process as being governed by vacancy chains in hierarchically structured organizations. Predictions deduced from the theory are tested with data on attainment processes within some 5,600 Swedish manufacturing establishments. The empirical results offer support for the theory and suggest that individual attainment processes systematically are influenced by the shape of the organizational structures in which they are embedded.
Notes
This research has been financially supported by a grant from the Bank of Sweden Tercentenary Foundation. I wish to thank Barbara Hobson, Jeroen Weesie, and two anonymous referees for useful comments and Eric Fong, Tak‐Chuen Luk and Michael Seltzer for excellent research assistance.