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Early selection and moral hazard

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  • Lee, Kangoh
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    Abstract

    The selection of individuals into a school or job or team may be made early based on the expected skills. For instance, children are selected into an academic or a vocational education track at early ages in Germany and other European countries. The paper considers the effects of such early selection on the incentive to make effort.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165176512000857
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    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 116 (2012)
    Issue (Month): 2 ()
    Pages: 139-142

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    Handle: RePEc:eee:ecolet:v:116:y:2012:i:2:p:139-142

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    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Early selection; Effort; Moral hazard;

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    1. Hao Li & Wing Suen, 2000. "Risk Sharing, Sorting, and Early Contracting," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 1058-1087, October.
    2. Eric A. Hanushek & Ludger Wößmann, 2005. "Does Education Tracking Affect Performance and Inequality? Differences-In-Differences Evidence Across Countries," Discussion Papers 04-027, Stanford Institute for Economic Policy Research.
    3. Muriel Niederle & Alvin E. Roth, 2009. "Market Culture: How Rules Governing Exploding Offers Affect Market Performance," American Economic Journal: Microeconomics, American Economic Association, vol. 1(2), pages 199-219, August.
    4. Niederle, Muriel & Roth, Alvin E., 2009. "Market Culture: How Rules Governing Exploding Offers Affect Market Performance," Scholarly Articles 11077571, Harvard University Department of Economics.
    5. Li, Hao & Rosen, Sherwin, 1998. "Unraveling in Matching Markets," American Economic Review, American Economic Association, vol. 88(3), pages 371-87, June.
    6. Roth, Alvin E, 1984. "The Evolution of the Labor Market for Medical Interns and Residents: A Case Study in Game Theory," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 991-1016, December.
    7. Roth, Alvin E & Xing, Xiaolin, 1994. "Jumping the Gun: Imperfections and Institutions Related to the Timing of Market Transactions," American Economic Review, American Economic Association, vol. 84(4), pages 992-1044, September.
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