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Competitive Careers as a Way to Mediocracy

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  • Matthias Kräkel

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Abstract

We show that in competitive careers based on individual performance the least productive individuals may have the highest probabilities to be promoted to top positions. These individuals have the lowest fall-back positions and, hence, the highest incentives to succeed in career contests. This detrimental incentive effect exists irrespective of whether effort and talent are substitutes or complements in the underlying contest-success function. However, in case of complements the incentive effect may be be outweighed by a productivity effect that favors high effort choices by the more talented individual

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File URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse25_2009.pdf
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Bibliographic Info

Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse25_2009.

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Length: 28
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:bon:bonedp:bgse25_2009

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Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de

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Keywords: career competition; contest; mediocracy;

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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The economics of the Peter principle
    by chris dillow in Stumbling and Mumbling on 2009-12-10 14:18:50

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