Salaries and Career Opportunities in the Banking Industry: Evidence from the Personnel Records of the Union Bank of Australia

Abstract

This paper uses personnel records to examine the importance of seniority-based personnel practices in the Australian banking industry during the late 19th and early 20th centuries. It is shown that internal labor markets were well established by the 1880s as limited ports of entry, internal promotion, shielding from the external economy, and seniority-based wages were commonplace throughout the industry. Finally, it is argued that these practices were motivated by efficiency and attracted quality workers, reduced turnover, screened workers, and promoted honesty and effort.