allocations is not rejected in models that allow more than two household members to have agency in decision-making. In contrast … decision-making within complex households …

to forgo the potentially valuable private information of their managers. We study the introduction of job testing across … 15 firms employing low-skilled service sector workers. When faced with similar applicant pools, we find that managers who … appear to hire against test recommendations end up with worse average hires. This suggests that managers often overrule test …

Jobs increasingly require good decision-making. Workers are valued not only for how much they can do, but also for … a field survey where participants act as managers assigning fictional workers with heterogeneous productivity schedules … conditional on IQ, numeracy, and education, and the return to allocative skill is greater in decision-intensive occupations …