Internal Labour Markets and the Market For Highly Qualified Labour

Abstract

Traditionally the literature on manpower forecasting utilises either the man power requirements approach or the neo-classical competitive model. A third alternative, based on the internal labour market queuing model, may provide a more effective guide for policy formulation by emphasising the important role of on-the-job training and the acquisition of job-specific skills. Empirical results relating directly to the highly qualified labour market overseas are used as a basis for a recent study carried out in Western Australia to test the validity of the concept of the internal labour market. This research appears to suggest that if the alternate manpower model is valid, approaches to overcome the problems of unemployment and to more accurately forecast manpower require ments should differ from those being currently undertaken. Far more emphasis should be placed on the internal labour market and activity should focus on the specific job training function.