Strong institutions attract talent to productive activities, whereas weak ones raise the appeal of redistribution and rent-seeking. We propose a theory that describes the impact of institutions on occupational choices over a range of abilities, and predicts that the sensitivity of such choices...

Research in changes to the institutional environment has set a scientific problem of a balance between consequences from such changes and a need to sort out differences across imperfect standards and regulations. Approaches to solve the abovementioned issue are not the same. In a review of...