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dc.contributor.authorDickinson, David L.en_US
dc.contributor.authorVilleval, Marie-Claireen_US
dc.date.accessioned2008-06-25en_US
dc.date.accessioned2010-07-07T11:23:46Z-
dc.date.available2010-07-07T11:23:46Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/34458-
dc.description.abstractThe Peter Principle states that, after a promotion, the observed output of promoted employees tends to fall. Lazear (2004) models this principle as resulting from a regression to the mean of the transitory component of ability. Our experiment reproduces this model in the laboratory by means of various treatments in which we alter the variance of the transitory ability. We also compare the efficiency of an exogenous promotion standard with a treatment where subjects self-select their task. Our evidence confirms the Peter Principle when the variance of the transitory ability is large. In most cases, the efficiency of job allocation is higher when using a promotion rule than when employees are allowed to self-select their task. This is likely due to subjects’ bias regarding their transitory ability. Naïve thinking, more than optimism/pessimism bias, may explain why subjects do not distort their effort prior to promotion, contrary to Lazear’s (2004) prediction.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3205en_US
dc.subject.jelC91en_US
dc.subject.ddc650en_US
dc.subject.keywordPromotionen_US
dc.subject.keywordPeter Principleen_US
dc.subject.keywordsortingen_US
dc.subject.keywordexperimenten_US
dc.subject.stwErwerbsverlaufen_US
dc.subject.stwLeistungsmotivationen_US
dc.subject.stwAnforderungsprofilen_US
dc.subject.stwKarriereplanungen_US
dc.subject.stwTesten_US
dc.titleThe Peter Principle: an experimenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn559459092en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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