D4 Julkaistu kehittämis- tai tutkimusraportti tai -selvitys
Delegation and Recruitment in Organizations: The Slippery Slope to "Bad" Leadership
Tekijät: Çakir Selcen, Matakos Konstantinos, Tukiainen Janne
Kustantaja: Aboa Centre for Economics
Julkaisuvuosi: 2022
Sarjan nimi: Aboa Centre for Economics Discussion papers
Numero sarjassa: 158
ISSN: 1796-3133
Verkko-osoite: https://ace-economics.fi/kuvat/dp158.pdf
Rinnakkaistallenteen osoite: https://research.utu.fi/converis/portal/detail/Publication/180656675
We construct a dynamic model of two-sided sorting in labor markets with multi-dimensional agent and firm heterogeneity. We apply it to study optimal party structure and the decision of how (de)centralized candidate recruitment should be. Parties are non-unitary actors and compete at the local markets over recruitment of competent candidates and local organizers possess an informational advantage over the distribution of politicians’ skill, which is positively related to electoral rent generation. Party leadership has a dual objective: they want simultaneously to maximize a) the organization’s rents and b) their retention probability. Thus, when deciding how centralized recruiting should be, leaders face a trade-off: while delegating candidate selection to local party organizations might increase the party’s electoral returns, it also limits a leader’s ability to stack the organization with loyalists who are more likely to retain her when she faces a (stochastic) leadership challenge. We characterize an equilibrium delegation rule with two key properties: a) some high-skilled politicians may select into lower performing parties due to ideological alignment, and b) more extreme and incompetent leaders delegate less and as a result, survive longer at the helm of a shrinking party. Thus, our findings highlight the slippery slope to authoritarian and persistently "bad" leadership. Our model can be applied to other labor recruitment settings.
Ladattava julkaisu This is an electronic reprint of the original article. |