CRISTOBAL CAMPOAMOR, ADOLFO
No
Econ. Bull.
Article
Científica
0.192
01/01/2015
000360196300059
2-s2.0-84924853060
This note describes the effects on human capital formation of rank-order tournaments offering identical prizes to a given number of the ranked contestants. This compensation scheme is thought to resemble the selection processes in different areas of the public administration, particularly in Southern European countries. In the presence of contestants with identical ability, the incentives for educational effort are highest when the variance of fi nal returns is maximized.