In a large representative sample of young Norwegian workers, we estimate gross transitions to unemployment, education, and other exits in a multinomial logit. In line, with received literature, we find that individuals with high education, experience, and income have significantly lower...

I consider two seemingly unrelated puzzles; 1. Why is relative performance evaluation (RPE) used less in CEo compensation than agency theory suggests? 2. Why is sometimes, e.g., for fund managers, a mediocre performance more highly rewarded than excellence? I consider a simple tournament model,...