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Abstract
In a firm with multiple hierarchical levels, efficiency concerning promotion decisions can require information about worker abilities to be shared within the firm. We explore practices to improve intra-firm employer learning and the efficiency of promotion decisions. We find that firms can employ managerial bonuses and job rotation to improve intra-firm employer learning and avoid talent hoarding but the ability to commit to these practices is essential for avoiding talent hoarding. We also consider how equilibrium changes given heterogeneous worker visibility and compare our theoretical results to findings in the empirical literature.