We develop a continuous-time model of career concerns that incorporates human capital accumulation throughout the working life. Workers are able to generate an output that follows a diffusion process with a drift that is the sum of effort and ability ("talent"). Talent corresponds to a hidden...

This paper studies the forces which determine how diversity at a firm evolves over time. We consider a dynamic model o a single firm with two levels of employees, the entry level and the upper level. In each period, the firm selects a subset of the entry-level workers for promotion to the upper...

This paper studies the forces which determine how diversity at a firm evolves over time. We consider a dynamic model o a single firm with two levels of employees, the entry level and the upper level. In each period, the firm selects a subset of the entry-level workers for promotion to the upper...