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The Incentive Effects of Appointment Tournaments in German Higher Education

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  • Kristin Chlosta
  • Kerstin Pull

Abstract

In 2001, the German system of higher education underwent reforms that were, among others, intended to raise the incentives for university professors. However, even before the reform, publication records of university German professors showed high output levels over a long period of academic careers. We present one possibility of rationalizing the observed behavior by modeling the incentive effects of appointment tournaments in German higher education. We extend Lazear and Rosen (1981) by allowing for intrinsic motivation applying J-curved effort cost functions and accounting for contestant heterogeneity distinguishing junior academics and professors. We analyze the effects of selected reform elements on the incentives arising from the appointment system.

Suggested Citation

  • Kristin Chlosta & Kerstin Pull, 2010. "The Incentive Effects of Appointment Tournaments in German Higher Education," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 62(4), pages 378-400, October.
  • Handle: RePEc:sbr:abstra:v:62:y:2010:i:4:p:378-400
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    Cited by:

    1. Egbert, Henrik, 2010. "Die Gesetzesreform zur Entwicklung des wissenschaftlichen Personals in Bulgarien: Eine ökonomische Gesetzesfolgenabschätzung
      [The Reform of the Higher Education Law on the Development of Academic S
      ," MPRA Paper 55596, University Library of Munich, Germany, revised 01 Jul 2010.
    2. Agnes Bäker & Susanne Breuninger & Julia Muschallik & Kerstin Pull & Uschi Backes-Gellner, 2016. "Time to Go? (Inter)National Mobility and Appointment Success of Young Academics," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(3), pages 401-421, December.
    3. Stefanie Ringelhan & Jutta Stumpf-Wollersheim & Andreas Ostermaier & Isabell M. Welpe & Matthias Spörrle, 2016. "Give Me a Goal to be Creative: Investigating Goal Setting and Creative Performance," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(3), pages 337-359, December.

    More about this item

    Keywords

    Appointment System; Asymmetric Tournaments; Handicap; Incentives; Intrinsic Motivation; Reform of German Higher Education;

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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