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Tenure-Track Contract Helps Self-Selection

Popov, Sergey V (2015): Tenure-Track Contract Helps Self-Selection.

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Abstract

Tenure contract is criticized for curbing the incentives for spending effort after obtaining the tenured status. Yet, the best faculty seems to work on a tenure contract, and schools who employ the best faculty seem to prefer to offer a tenure-track contract to their new hires. I argue that tenure-track contracts are by construction more attractive to more able freshly minted PhDs, and therefore the observed sorting is rationalizable.

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