Career concerns, contracts, and effort distortions

Research output: Contribution to journalArticle

Abstract

A two-period, career-concerns model with symmetric information but uncertainty about each worker's ability is analyzed. Contracts are unobservable, but incomes are observable. It is shown that effort is distorted upward by contracts being unobservable and that the distortion depends positively on turnover.

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Subject classification (UKÄ) – MANDATORY

  • Economics
Original languageEnglish
Pages (from-to)42-58
JournalJournal Labor Economics
Volume20
Issue number1
Publication statusPublished - 2002
Publication categoryResearch
Peer-reviewedYes