The creation of an internal labor market is accomplished by hiring
employees from the external labor market to fill lower level jobs, or "ports of entry" (Doeringer & Piere. 1971;Williamson et al., 1975).If the firm hires employees at ports of entry and then upgrades the competency of their workers through on-the-job training, "teaching-by-doing," and socializa• tion, an internal labor market may protect the firm against misrepresentation of competency levels by job applicants (Williamson et al., 1975:
274).