IDEAS home Printed from https://ideas.repec.org/a/bla/labour/v11y1997i2p391-406.html
   My bibliography  Save this article

Tasks and Types: An Application of Mechanism Design to Self‐Selection in Labour Markets

Author

Listed:
  • Giuseppe Porro

Abstract

The Baron–Myerson (1982) regulatory mechanism is applied to the screening activity of a monopolist, who hires workers differentiated by quality and assigns them to different tasks. The employer charges a price to the workers for the screening service: necessary and sufficient conditions are provided for a self‐selective price function to exist. It is shown that under the optimal price function tasks are assigned in such a way that workers' effort is increasing in workers' quality. It is not necessarily true, however, that the price function must be increasing in workers' quality. A simple two‐types model is provided, showing the same results. Also the extension of the model to a dynamic context and, particularly, the requirements of a credible pre‐commitment available to the screener are discussed.

Suggested Citation

  • Giuseppe Porro, 1997. "Tasks and Types: An Application of Mechanism Design to Self‐Selection in Labour Markets," LABOUR, CEIS, vol. 11(2), pages 391-406, June.
    • Handle: RePEc:bla:labour:v:11:y:1997:i:2:p:391-406
    DOI: 10.1111/1467-9914.00042
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9914.00042
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9914.00042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:11:y:1997:i:2:p:391-406. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/csrotit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.