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Catching hipos: screening, wages, and competing for a job

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  • Maarten C.W. Janssen

Abstract

In this paper, I study the wage a firm sets to attract high ability workers (hipos) in situations where people compete for a job. I show that the more people compete, the larger a firm's incentives to sort high and low ability workers. Moreover, workers will signal their (high) ability in situations with many competitors only if a job offers a high enough wage. The main result, therefore, is that a firm sets higher wages, when more people compete. Copyright 2002, Oxford University Press.

Suggested Citation

  • Maarten C.W. Janssen, 2002. "Catching hipos: screening, wages, and competing for a job," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 321-333, April.
    • Handle: RePEc:oup:oxecpp:v:54:y:2002:i:2:p:321-333
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    Cited by:

    1. Oyer, Paul & Schaefer, Scott, 2011. "Personnel Economics: Hiring and Incentives," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823, Elsevier.
    2. Delfgaauw, Josse & Dur, Robert, 2007. "Signaling and screening of workers' motivation," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 605-624, April.

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