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IZA Discussion Paper No. 19023
October 2026
The Reproduction of Managerial Styles in an Internal Labor Market
Yusuke Makino, Shintaro Yamaguchi

Why do managerial styles persist even when managers turn over? Using personnel records from a large Japanese manufacturer, we estimate manager fixed effects on subordinates’ overtime hours as a measure of managerial style. Before promotion, some managers worked under supervisors who demanded more overtime from their subordinates. These managers later tend to demand more overtime from their own subordinates, and our evidence supports the interpretation that managers learn styles from former supervisors. Moreover, the firm repeatedly assigns managers with similar styles to the same sections, sustaining section-level persistence. Together, these processes reproduce managerial styles within an internal labor market.

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Mark Fallak
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Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

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