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Adverse Selection when Jobs are Hard to Do

Author

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  • Anthony A. Sampson
  • Robert Simmons

Abstract

Privately observed ability increases output and reduces effort required to complete tasks, in a model where harder tasks produce more output. The relation between average quality of the workforce and the wage rate is ambiguous. The model also produces a rat‐race, in the sense that some individuals work harder than is socially optimal. This distortion can be corrected by a non‐linear tax.

Suggested Citation

  • Anthony A. Sampson & Robert Simmons, 2000. "Adverse Selection when Jobs are Hard to Do," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(3), pages 325-336, August.
    • Handle: RePEc:bla:scotjp:v:47:y:2000:i:3:p:325-336
    DOI: 10.1111/1467-9485.00165
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    Cited by:

    1. Neunzig, Alexander R., 2002. "Effiziente Fixlöhne, Arbeitsfreude und Crowding-Effekte," CSLE Discussion Paper Series 2002-03, Saarland University, CSLE - Center for the Study of Law and Economics.
    2. Neunzig, Alexander R., 2002. "Effiziente Fixlöhne, Arbeitsfreude und Überwachungskosten," CSLE Discussion Paper Series 2002-02, Saarland University, CSLE - Center for the Study of Law and Economics.
    3. Neunzig, Alexander R., 2002. "Effiziente Fixlohnverträge für arbeitsfreudige Arbeitnehmer mit Berichtspflichten," CSLE Discussion Paper Series 2002-05, Saarland University, CSLE - Center for the Study of Law and Economics.
    4. Kato, Takao & Ogawa, Hiromasa & Owan, Hideo, 2016. "Working Hours, Promotion and the Gender Gap in the Workplace," IZA Discussion Papers 10454, Institute of Labor Economics (IZA).
    5. Neunzig, Alexander R., 2002. "Mehraufgaben-Prinzipal-Agenten-Analyse: Effiziente Arbeitsverträge für abwechslungsbegrüßende Arbeitnehmer," CSLE Discussion Paper Series 2002-04, Saarland University, CSLE - Center for the Study of Law and Economics.

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