Economics Seminar（2019-05）

Topic: Firm Growth and Promotion Opportunities

Speaker: Jin Li, the University of Hong Kong

Time: Tuesday,16^thApril, 13:30-15:00

Location: Room 217, Guanghua Building 2

Abstract:

We develop a model in which afirm makes a sequence of productiondecisions and has tomotivate each of its employees to exert effort. Thefirm motivates its employees through incentivepay and promotionopportunities, which may differ across different cohorts of workers. We showthat thefirm benefits from reallocating promotion opportunities across cohorts, resulting in anoptimal personnel policy that isseniority-based. We also highlight a novel time-inconsistentmotiveforfirm growth: when thefirm adopts an optimal personnel policy, it may pursue futuregrowth precisely to create promotion opportunities for existing employees.

Introduction:

Professor Jin Li is a professor of management and strategy, with joint appointment in economics. Prior to HKU, he has taught at Kellogg School of Management and London School of Economics, where he was a tenured associate professor of managerial economics and strategy. Professor Li earned his BA in economics and math (with high honors) from Wesleyan University, a BSc in applied math (with honors) from Caltech, and PhD in Economics from MIT.

Professor Li's main research area lies at the intersection of organizational economics, personnel economics, and labor economics. It focuses on the dynamics of informal relationships and explores how firms can design organizations to align incentives and build trust. This research sheds light on how organizational design can be a source of competitive advantage.

Professor Li has published in leading academic journals such as the American Economic Review, the Review of Economic Studies, AEJ- Microeconomics, Journal of Economic Theory, Journal of Labor Economics, and the RAND Journal of Economics. His works have also been featured in media outlets such as the BBC, the Economist, and Quartz, and he has written for Caixin and FTChinese. Professor Li won the Department of Management Teaching Prize at London School of Economics.

Your participation is warmly welcomed!