Take Home Assignment 7 In many cases when universities are hiring new faculty, they get applications from all over the world. As a standard part of the recruiting process, univer- sities typically pay for the most attractive candidates to fly in and visit for a day. University of Copenhagen Page 3 of 4 Problem Set 7 Microeconomics II Spring 2022 In this situation, many universities have problems with applications from non-serious candidates: Some of the people who send job applications are actually not interested in being hired, they just want to be invited on a free visit, either just for fun or because it gives them an opportunity to come and promote their research in-person. Universities really want to avoid getting applications from and inviting these non-serious candidates - they always end up saying no if they get offered the job so it is really waste of time or money. At the same time it is hard for universities to tell which applicants are actually serious. The questions below asks you to think about some potential solutions to the problem universities face, using insights and material from the course. (a) Based on basic economics, a common piece of advice for employers would be that 'if too many people are interested in the jobs you are offering, you should probably offer lower wages'. Discuss what would happen here if universities started offering lower wages to faculty. Does this sound like a good idea? Relate you answer to the concept of 'adverse selection'. (b) If you look at university job adds in practice, sometimes they seem to ask applicants to submit a lot of extra documents that are really time consuming to produce/find but not very relevant for selecting a good candidate (examples could be various long descriptions that seem irrelevant for the job, or simply certified copies of birth certificates that require you to reach out to the authorities). Discuss whether this could in fact be a good idea for universities. (c) Another problem that universities could face is that some people ap- plying might not be very productive (not very good at research and teaching). But it might be hard to tell who those people are. Could asking for extra documents (as under b) be a solution to this problem? Does you answer depend on whether productive people are good at pro- ducing/finding documents