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Rules Versus Discretion: Favouritism and the Use of Requirements of Formal Qualifications

Author

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  • Snellman, K.

Abstract

The recruitment of new employees is analysed in a theoritical model. It is shown that it can be optimal to implement requirements of formal qualifications for jobs, although it would be possible for the manager to find applicants who have a higher expected ability but no formal qualifications.

Suggested Citation

  • Snellman, K., 1998. "Rules Versus Discretion: Favouritism and the Use of Requirements of Formal Qualifications," Papers 98-12, Aarhus School of Business - Department of Economics.
    • Handle: RePEc:fth:aascbu:98-12
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    More about this item

    Keywords

    ASYMETRIC INFORMATION ; LABOUR MARKET ; RECRUITMENT;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other

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