著者

清滝 ふみ

出版者

関西学院大学

雑誌

經濟學論究 (ISSN:02868032)

巻号頁・発行日

vol.57, no.2, pp.27-46, 2003-06-25

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This paper examines why the trade off between incentives and job assignment causes the Peter Principle (where people are promoted to their level of incompetence). It develops a model in which the employer cannot write long-term wage contracts. Under the incomplete contract, employees tend to under-invest in the firm-specific human capital. We show that the employer distorts the assignment in the direction of the Peter Principle to improve this hold-up problem.