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Strategic Shirking in Promotion Tournaments

Author

Listed:
  • Jed DeVaro
  • Oliver Gürtler

Abstract

We provide a theoretical analysis of multitask promotion tournaments in which workers increase their promotion chances by under-performing (over-performing) on tasks that are de-emphasized (emphasized) in a promotion rule. In some settings the firm can mitigate such "strategic shirking" by committing to a promotion rule that requires more balance in the performances across job tasks than would be justified on productivity grounds. The model can explain "Putt’s Law", which states that competent workers are sometimes passed over for promotion in favor of incompetent ones. (JEL J24, M53).

Suggested Citation

  • Jed DeVaro & Oliver Gürtler, 2016. "Strategic Shirking in Promotion Tournaments," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 32(3), pages 620-651.
    • Handle: RePEc:oup:jleorg:v:32:y:2016:i:3:p:620-651.
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    File URL: http://hdl.handle.net/10.1093/jleo/ewv019
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    Citations

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    Cited by:

    1. Galasso, Alberto & Mitchell, Matthew & Virag, Gabor, 2018. "A theory of grand innovation prizes," Research Policy, Elsevier, vol. 47(2), pages 343-362.
    2. Jed DeVaro & Oliver Gürtler, 2020. "Strategic shirking in competitive labor markets: A general model of multi‐task promotion tournaments with employer learning," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(2), pages 335-376, April.
    3. Jed DeVaro & Suman Ghosh & Cindy Zoghi, 2018. "Job Characteristics and Labor Market Discrimination in Promotions," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(3), pages 389-434, July.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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