Studies on incentives for investment in specific human capital
DOI:
Author:
Affiliation:

Clc Number:

Fund Project:

  • Article
  • |
  • Figures
  • |
  • Metrics
  • |
  • Reference
  • |
  • Related
  • |
  • Cited by
  • |
  • Materials
  • |
  • Comments
    Abstract:

    This paper explores the design of incentive scheme to induce agent to invest in specific human capital, whose motivation to invest depends on career concerns. In case that investment is the agent's hidden action and productivity is the principal's private information, productivity contingent contract can't induce efficient investment due to double moral hazard. Both up or out contract and promotion contract can alleviate double moral hazard problem.But the efficiency of Promotion Scheme depends on the principal’s reputation. Whereas up or out contract can achieve Pareto efficiency when human capital is specific enough,or the marginal cost of invest is low enough

    Reference
    Related
    Cited by
Get Citation
Share
Article Metrics
  • Abstract:
  • PDF:
  • HTML:
  • Cited by:
History
  • Received:
  • Revised:
  • Adopted:
  • Online:
  • Published:
You are the th visitor Address:Room 908, Building A, 25th Teaching Building, Tianjin University, 92 Weijin Road, Nankai District, Tianjin Postcode:300072
Telephone:022-27403197 Email:jmsc@tju.edu.cn