Hypocrisy of Economics Professors

Economics in action

Economics professors especially those who practice mainstream (or neoclassical) economics including me have a tendency to prescribe `hire and fire’ policy as a way to enhance the efficiency of organizations. We may think that the use of contract employees and financial incentives may enhance the efficiency in all types of organizations.

However, in our personal life, we look for per anent jobs. There is a hypocrisy in this regard. How do we explain this behavior?  In one sense, such a behavior is not at all rare. Entrepreneurs who argue for opening up markets would prefer (and sometimes argues for) some monopoly in their own economic activity. The business press which shouts for economic reforms and the opening up of economy in India, does not want Foreign Direct Investment in Media.

The behavior of economics professors is a little more complex. The prescription to use contract workers, `hire and fire’ policy…

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