Autonomy and recruitment
Presenter
Ph.D. Student, Organizational Economics, Ludwig Maximilian University of Munich
Time and location
North Quad 4330, Thursday (1:00-2:00) pm
Abstract
In this paper, we examine the impact of Autonomy on recruitment. We assume that both the firm as well as the agent have their own Autonomy levels. A mismatch of the Autonomy levels causes the agent disutility: at too high a mismatch, he is unwilling to accept an employment offer. Additionally, Autonomy creates a moral hazard problem. In optimizing the contract offer, the firm faces a trade-off between how much profit it can make on a successfully recruited Agent and what percentage of the workforce it can attract.