find that, in case of delegation, managers (as predicted) put tighter restrictions when interests are less aligned. Workers … appears to be driven by lying aversion of workers nor by credulity of managers. Qualitatively, our results are in line with a …

Firms hiring fresh graduates face uncertainty on the future productivity of workers. Theory suggests that starting … wages reflect this, with lower pay for greater uncertainty. We use the dispersion of exam grades within a field of education … as an indicator of the unobserved heterogeneity that employers face. We find solid evidence that starting wages are lower …