Recruitment is often delegated to senior employees. Delegated recruitment, however, is vulnerable to moral hazard … relates to the candidates type . Delegation is then superior to direct (owner) recruitment and offering tenure or guaranteed … seniority to the senior employee is neither always desirable for the owner nor necessary to ensure good recruitment. If there is …

learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate …