Overachieving and Obsessive Behavior as Signaling Devices under Career Concern

Abstract

This paper provides a rationale for overachievement in non-professional activities in the labor market. The intrinsically motivated worker uses his achievement in the non-professional activity as a signaling device to protect his image. 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 activity in an earlier stage of his career.