characterized by matching frictions and costly screening. When effort in improving ability raises both the mean and the variance of … the resulting ability distribution, multiple equilibria may arise. In the high-effort equilibrium, heterogeneity in … ability is sufficiently large to induce firms to select the best workers, thereby confirming the belief that effort is …

. The theory is based on the idea that workers can bargain low ‘effort’ (high crew sizes etc.) if they and the firm have …

function which is a CES index of utility levels. We study the optimal allocation of individual education effort, schooling … that help and effort are sufficiently substitutable, we find that individual education investment levels are an increasing …

term. We propose a novel pension system that solves the effort problem while preserving willingness to implement long …

average effort level tends to increase. The socially optimal threshold can be set by the public. Alternatively, one could …

is initially uninformed about the officeholder’s ability. If office-holder effort and ability interact in the … determination of performance in office, then an office-holder has an incentive to learn, i.e., raise effort so that performance … more than offset the positive ‘re-election concerns’ effect of elections on effort, implying higher effort with appointment …