Universität zu Köln

Deutscher, Christian ORCID: 0000-0002-3714-3326, Gürtler, Marc, Gürtler, Oliver ORCID: 0000-0001-7792-5325 and DeVaro, Jed ORCID: 0000-0003-4849-1489 (2020). Firm choice and career success - theory and evidence. European Economic Review, 127. p. 103470. AMSTERDAM: ELSEVIER. ISSN 1873-572X

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Abstract

We investigate how the decision of workers to join a specific type of firm affects their future career opportunities. Workers can either join a very competitive firm (big pond) or a less competitive one (small pond). In a big pond, it is more difficult to advance, but the potential rewards are higher. We determine a separating equilibrium in which only workers who are confident in their ability join big ponds, implying that the average abilities of new entrants are higher in big ponds than in small ponds. In an empirical analysis with data from professional soccer, we support all the implications from our theoretical model. (C) 2020 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Deutscher, Christian UNSPECIFIED orcid.org/0000-0002-3714-3326 UNSPECIFIED Gürtler, Marc UNSPECIFIED UNSPECIFIED UNSPECIFIED Gürtler, Oliver UNSPECIFIED orcid.org/0000-0001-7792-5325 UNSPECIFIED DeVaro, Jed UNSPECIFIED orcid.org/0000-0003-4849-1489 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-325178
DOI:	10.1016/j.euroecorev.2020.103470
Journal or Publication Title:	European Economic Review
Volume:	127
Page Range:	p. 103470
Date:	2020
Publisher:	ELSEVIER
Place of Publication:	AMSTERDAM
ISSN:	1873-572X
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Center of Excellence C-SEB Faculty of Management, Economics and Social Sciences > Economics > Microeconomics, Institutions and markets > Professorship for Economics
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language LABOR-MARKET; TOURNAMENTS; RISK; INCENTIVES; EXPERIENCE; PROMOTIONS English Economics English
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/32517