less clear. Using a contest model, this paper investigates the pure incentive effects of external recruiting. Our results …External recruiting at least weakly improves the quality of the pool of applicants, but the incentive implications are … discouragement of low-ability workers, the firm will benefit from external recruiting. If, however, the discouragement effect …

less clear. Using a contest model, this paper investigates the pure incentive effects of external recruiting. Our results …External recruiting at least weakly improves the quality of the pool of applicants, but the incentive implications are … discouragement of low ability workers, the firm will benefit from external recruiting. If, however, the discouragement effect …