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Title: Things Can Only get Worse? An Empirical Examination of the Peter Principle.
Authors: Barmby, Tim
Eberth, Barbara
Ma, Ada
Keywords: Tournaments
Peter Principle
Issue Date: 2006
Series/Report no.: University of Aberdeen Business School Working Paper Series
Abstract: The results reported in this paper suggest the possible operation of the Peter Principle in a large hierarchical financial sector firm. This result holds even after we allow for variation in optimal effort over stages in the hierarchy. The method also allows us to attribute the contributory factors for the observed fall in performance after a promotion. It appears that approximately 2/3 of the fall is due to the Peter Principle and 1/3 due to lessening incentives.
ISSN: ISSN 0143-4543
Appears in Collections:Economics research
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