Competitive careers as a way to mediocracy

Matthias Kräkel

We show that incompetitive careers based on individual performance the least productive individuals may have the highest probabilities to be promoted to top positions. These individuals have the lowest fall-back positions and, hence, the highest incentives to succeed in career contests. This detrimental incentive effect exists irrespective of whether effort and talent are substitutes or complements in the underlying contest-success function. However, in case of complements the incentive effect may be be outweighed by a productivity effect that favors high effort choices by the more talented individuals.

MoreLess

Year of publication:	2009
Authors:	Kräkel, Matthias
Publisher:	Mannheim [u. a.] : Sonderforschungsbereich/Transregio 15
Subject:	career competition \| contest \| mediocracy \| Erwerbsverlauf \| Occupational attainment \| Wettbewerb \| Competition \| Extensives Spiel \| Extensive form game \| Leistungsmotivation \| Work motivation \| Arbeitsproduktivität \| Labour productivity \| Leistungsentgelt \| Performance pay \| Theorie \| Theory