Recruitment, training and career concerns

Abstract

We examine training and recruitment policies in a two period model that nests two forms of production, "routine" work where ability and effort are substitutes and "creative" work where they are complements. Alternative ways of improving average ability have opposite implications for agents career concerns. While teaching to the top (training complementary to ability) or identifying star performers increases agents career concerns, teaching to the bottom has the opposite effect. The paper also makes more general comments relating to models of reputation.