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Arithmetics of Research Specialization

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Abstract

I model the use of research specialization in hiring as a signal of ability. I demonstrate that rewarding for specialization can make an average non-specializing candidate on average better than average specializing candidate, and vice versa. Specialization works as a good ability signal only when both good and bad candidates are very likely to churn out good projects.

Suggested Citation

  • Popov, Sergey V, 2020. "Arithmetics of Research Specialization," Cardiff Economics Working Papers E2020/1, Cardiff University, Cardiff Business School, Economics Section.
    • Handle: RePEc:cdf:wpaper:2020/1
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    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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