Sequential contracting with multiple employers is a common feature of modern labor markets. Employment relations often terminate due to raids. When a worker is raided, the initial employer may enjoy an informational advantage over the raiders, as she is likely to have better information on the...

"This paper studies Holmstrom's [1999] seminal model of career concerns, but considers that a small change in the beliefs about the agent's future productivity may imply a large change in his compensation--because, for example, the agent may be fired or promoted. This allows us to study how the...