The Impact of Internal Labor Markets on Newspaper Industry Personnel Practices

Media industries in the United States have consolidated significantly in the second half of the last century. One consequence of the consolidation is a restructuring of the way the industries construct and access their labor markets. As the media group integrates or even coordinates the hiring of personnel, the Internal Labor Market can be expanded to cover all or major parts of the media company. Creation of what is termed here an Extended Internal Labor Market has the potential to alter personnel practices in the group.

This article tested this expectation in one specific area, the hiring of and investment in journalists, for one type of media, the daily newspaper industry. One indicant of quality hiring is the location and employment of journalists who are members of racial or ethnic minority groups. It was predicted in this article that daily newspapers that are part of an optimally configured Extended Internal Labor Market would be more likely to hire minority journalists than other newspapers. These newspapers also were expected to be more likely to value professional development of their journalists, and to provide encouragement for their journalists to engage in both internal and external training activities.

The data are generally consistent with the hypotheses. The size of the company plays an important role in understanding the relationships.