CInSt research seminar Arithmetics of Research Specialization": Sergey Popov (HSE University, Cardiff Business School)

We model the use of research specialization in hiring as a signal of ability. We demonstrate that rewarding for specialization can make an average non-specializing candidate on average better than an average specializing candidate, and vice versa. Specialization works as a good ability signal only when both good and bad candidates are very likely to churn out good projects. However, a "tenure-track’’ contract helps rationalize the penalty for no specialization.