Abstract
Tenure-track contract is criticized for curbing the incentives to expend effort after obtaining tenured status. Yet the most productive faculties seem to work on a tenure contract, and schools which aim to employ the best faculty seem to prefer to offer tenure-track contracts to their new recruits. I argue that tenure-track contracts are by construction more attractive to more able freshly minted PhDs, and therefore the observed sorting is rationalizable.
| Original language | English |
|---|---|
| Pages (from-to) | 2482-2486 |
| Number of pages | 5 |
| Journal | Economics Bulletin |
| Volume | 35 |
| Issue number | 4 |
| Publication status | Published - 21 Nov 2015 |