management position. However, if non-contractible managerial decision rights give rise to private benefits and preference … misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private … managerial decision rights and performance-based promotions leads to a situation often referred to as the Peter principle …

Skilled labor is a key input to the innovation process. A shortage in supply of skilled labor may hence impede … innovation activities, resulting in lower productivity gains. While governments are concerned about these likely negative impacts …, there is only limited empirical evidence whether and to what extent labor shortage affects innovation activities. The paper …