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Job competition, employability and incentives for human capital formation

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  • Shaked, Avner
  • Cristobal Campoamor, Adolfo

Abstract

This note describes the effects on human capital formation of rank-order tournaments offering identical prizes to a given share of the ranked contestants. This compensation scheme is thought to resemble the selection processes in different areas of the public administration, particularly in Southern European countries. In the presence of contestants with identical ability, the incentives for educational effort are highest when the variance of final returns is maximized.

Suggested Citation

  • Shaked, Avner & Cristobal Campoamor, Adolfo, 2014. "Job competition, employability and incentives for human capital formation," MPRA Paper 56058, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56058
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    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 199-230, April.
    3. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute of Labor Economics (IZA).
    4. Frédéric Docquier & Hillel Rapoport, 2012. "Globalization, Brain Drain, and Development," Journal of Economic Literature, American Economic Association, vol. 50(3), pages 681-730, September.
    5. Muhammad Asali & Adolfo Cristobal-Campoamor & Avner Shaked, 2016. "Local human capital formation and optimal FDI," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(5), pages 691-705, August.
    6. Daniel Mejía & Marc St-Pierre, 2007. "Human capital formation, inequality, and competition for jobs," Documentos CEDE 4105, Universidad de los Andes, Facultad de Economía, CEDE.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Human capital formation; tournaments; benchmarking; public sector; employability;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I2 - Health, Education, and Welfare - - Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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