Download This PaperOn the Merits of Meritocracy
45 Pages Posted: 26 Apr 2012
Date Written: April 25, 2012
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: Suggested Citation
Morgan, John and Sisak, Dana and Várdy, Felix, On the Merits of Meritocracy (April 25, 2012). Available at SSRN: https://ssrn.com/abstract=2045954. or http://dx.doi.org/10.2139/ssrn.2045954
Felix Várdy (Contact Author)
CESifo (Center for Economic Studies and Ifo Institute) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany
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