Finding Your Calling: Matching Skills With Jobs in the Mutual Fund Industry

42 Pages Posted: 21 Jan 2021

See all articles by Gjergji Cici

Gjergji Cici

University of Kansas - School of Business

Mario Hendriock

University of Cologne - Department of Finance; University of Cologne - Centre for Financial Research (CFR)

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR)

Date Written: November 18, 2020

Abstract

To best utilize labor, companies need to optimally match their employees’ skills with job types that best fit those skills. We examine this optimal matching process in the mutual fund industry. Mutual fund families enable their managers to try out funds with different investment styles in a learning-by-trying fashion until they find their optimal match. After this has happened, managers operate at higher productivity levels and tend to stay in the same investment style. Fund families respond to this rationally by allocating more capital to the optimally matched managers, while the optimally matched managers respond by taking more active bets.

Keywords: human capital, mutual funds, occupational match finding

JEL Classification: G23, J24, J62, M50

Suggested Citation

Cici, Gjergji and Hendriock, Mario and Kempf, Alexander, Finding Your Calling: Matching Skills With Jobs in the Mutual Fund Industry (November 18, 2020). Available at SSRN: https://ssrn.com/abstract=3732930 or http://dx.doi.org/10.2139/ssrn.3732930

Gjergji Cici

University of Kansas - School of Business ( email )

Capitol Federal Hall
1654 Naismith Drive
Lawrence, KS 66045
United States
785-864-3873 (Phone)

HOME PAGE: http://business.ku.edu/gjergji-cici

Mario Hendriock (Contact Author)

University of Cologne - Department of Finance ( email )

Cologne, 50923
Germany

University of Cologne - Centre for Financial Research (CFR) ( email )

Albertus-Magnus Platz
Cologne, 50923
Germany

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR) ( email )

Cologne, 50923
Germany
+49 221 470 2714 (Phone)
+49 221 470 3992 (Fax)

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