The phenomena of engineers receiving salaries higher than longer tenure engineers in an organization is consistent with the concept of internal labor markets.

Question

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Internal labor markets refer to the job market within a particular organization where employees can be moved from one position to another. The concept asserts that employees are paid based on their skills, knowledge, and experience, and not purely on their seniority or length of service in the organization. Therefore, it is possible for engineers with less tenure but more valuable skills to earn higher salaries than more experienced engineers with less valuable skills.

The Phenomena of Engineers Receiving Salaries Higher Than Longer Tenure