Thomas Peeters will present his paper on "The Survival of Mediocre Superstars in the Labor Market" at the UZH Business Economics Research Seminar.
We examine the extent to which firms in a ‘superstar’ labor market hire experienced, but low ability (‘mediocre’) workers instead of novice workers with higher upside potential. We exploit high-frequency information on worker performance to estimate the revealed ability of experienced workers at the time they are hired by a new firm. For around forty percent of these hires, the revealed ability of the hired experienced worker lies below the hiring threshold that maximizes the average ability of the active workforce. Replacing all mediocre hires by novice workers would increase the average ability of the workforce by 0.1 standard deviations.
About Thomas Peeters
Thomas works as an associate professor at the Department of Applied Economics of the Erasmus School of Economics. He teaches courses on firm strategy, industrial organization and sports economics in the MSc and BSc program in economics and business. He is also a research fellow at Tinbergen Institute and a member of the Erasmus Research Institute in Management (ERIM).
In 2019 he won the "Societal Impact Award" of the Erasmus School of Economics. In 2011 he won the Young Economist Award from the Flemish Economic Association (VVE).
Thomas' main research interests include sports economics, industrial organization, and managerial economics. His work has appeared in journals such as Economic Policy, Management Science, Global Strategy Journal, International Journal of Industrial Organization and the International Journal of Forecasting.