Overachieving and Obsessive Behavior as Signaling Devices under Career Concern

Abstract

This paper provides an economic rationale for overachieving behavior in non-professional activities in the labor market.  The intrinsically motivated worker uses his achievement in the non-professional activity to signal his work ethic.  When the worker's career concern is weak, he exerts no extra effort on his non-professional activity.  When the worker's career concern is strong, however, his effort level for the non-professional activity can go beyond the bliss point. With a very strong career concern, an "obsessive behavior" can arise in equilibrium, as the intrinsically motivated worker may choose to sacrifice the professional activity for the non-professional one in an earlier stage of his career.