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Horses for Courses: Setting Tasks for Spotting Talent

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  • Saptarshi P. Ghosh

Abstract

We investigate a distortion in the labour market that is rampant in developing countries and occurs in the form of inaccurate estimation of the innate talents of employees. We characterise the optimal level of difficulty in a predictive task that an employer, who acts as the evaluator, must choose in order to have the least noise in the talent estimation process. Contrary to the standard noise minimization result, our model re affirms the staffing policy of throwing employees in the deep end. We also find that the evaluator will not benefit from knowing the result of the predictive task set from beforehand. JEL: D82, D83

Suggested Citation

  • Saptarshi P. Ghosh, 2018. "Horses for Courses: Setting Tasks for Spotting Talent," Review of Market Integration, India Development Foundation, vol. 10(3), pages 184-196, December.
  • Handle: RePEc:sae:revmar:v:10:y:2018:i:3:p:184-196
    DOI: 10.1177/0974929218802146
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    References listed on IDEAS

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    1. Anbarci, Nejat & Ghosh, Saptarshi P. & Roy, Jaideep, 2017. "Information control in reputational cheap talk," Games and Economic Behavior, Elsevier, vol. 106(C), pages 153-160.
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    More about this item

    Keywords

    Task difficulty; private signal; talent spotting;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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