CInSt Research Seminar

Sergey Popov, leading research fellow of the Center for Institutional Studies and Lecturer in Economics of the Cardiff Business School has presented the paper "Arithmetics of Research Specialization" co-authored with Eyal Winter, Professor of Economics, Lancaster U.

Abstract
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.