Try Me! On Job Assignments as a Screening Device
AbstractWe study the optimal allocation of screening tasks between two agents (incumbent vs. outsider or senior vs. junior) competing for one job. First, we characterize the inefficiencies from the principal's viewpoint of delegating the selection of the screening procedure to the incumbent. In general, the information disclosed by the screening tasks and the turnover rates will be inefficiently small due to the incumbent's willingness to undertake too many of these tasks. Second, we show that it may be optimal for organizations to favour the selection of outsider/junior agents relative to incumbent/senior ones because the former have greater implicit (career concern type) incentives than the latter to exert effort and perform efficiently.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2552.
Date of creation: Sep 2000
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Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
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"The economics of career concerns: part 1 :comparing information structures,"
ULB Institutional Repository
2013/9617, ULB -- Universite Libre de Bruxelles.
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