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On the Merits of Meritocracy

Author

Listed:
  • John Morgan

    (University of California, Berkeley)

  • Dana Sisak

    (Erasmus University Rotterdam)

  • Felix Vardy

    (University of California, Berkeley and IMF)

Abstract
We study career choice when competition for promotion is a contest. A more meritocratic profession always succeeds in attracting the highest ability types, whereas a profession with superior promotion benefits attracts high types only if the hazard rate of the noise in performance evaluation is strictly increasing. Raising promotion opportunities produces no systematic effect on the talent distribution, while a higher base wage attracts talent only if total promotion opportunities are sufficiently plentiful.

Suggested Citation

  • John Morgan & Dana Sisak & Felix Vardy, 2012. "On the Merits of Meritocracy," Tinbergen Institute Discussion Papers 12-077/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20120077
    as

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    File URL: https://papers.tinbergen.nl/12077.pdf
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    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Ghazala Azmat & Marc Möller, 2009. "Competition among contests," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 743-768, December.
    3. Delfgaauw, Josse & Dur, Robert, 2010. "Managerial talent, motivation, and self-selection into public management," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 654-660, October.
    4. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. repec:hum:wpaper:sfb649dp2016-003 is not listed on IDEAS
    2. Quaresima, Federico, 2019. "Patronage Appointments between Politics and Public Governance: a Review," MPRA Paper 94650, University Library of Munich, Germany.
    3. Hafalir, Isa E. & Hakimov, Rustamdjan & Kübler, Dorothea & Kurino, Morimitsu, 2018. "College admissions with entrance exams: Centralized versus decentralized," Journal of Economic Theory, Elsevier, vol. 176(C), pages 886-934.
    4. Federico Quaresima & Fabio Fiorillo, 2017. "The patronage effect: a theoretical perspective of patronage and political selection," Working papers 63, Società Italiana di Economia Pubblica.
    5. Stylianos Despotakis & Isa Hafalir & R. Ravi & Amin Sayedi, 2017. "Expertise in Online Markets," Management Science, INFORMS, vol. 63(11), pages 3895-3910, November.
    6. Drugov, Mikhail, 2015. "Optimal Patronage," CEPR Discussion Papers 10343, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    career choice; promotion competition; selection; meritocracy;
    All these keywords.

    JEL classification:

    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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