Courty, Pascal; Marschke, Gerald - Institute for the Study of Labor (IZA) - 2008
, the physician
sets e to maximize b1e C(ejc). The period three e ort e(c;b1) solves
Ce(ejc) = b1 (1)
13
We can now …
insights apply more broadly to other specialized labor markets.2
Speci cally, themodelcombinesmoralhazard … occupa-
2Examples include markets for other professionals (e.g. business and law education also o er special-
izations), and …