Signaling Drive Over the Long Term
12 Pages Posted: 29 May 2010
Date Written: November 4, 2009
Abstract
An agent's productivity depends on his responsiveness to existing incentives ("drive"). Over the long term, this heterogeneity in drive may create significant incentives for the agent to work hard even with vanishingly small amount of existing incentives, explicit or implicit.
Keywords: career concerns, hidden heterogeneity, long run labor supply
JEL Classification: C70, D82, D23
Suggested Citation: Suggested Citation
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