Why do the world’s most prestigious firms—such as McKinsey, Goldman Sachs and other elite consulting giants, investment banks, and law practices—hire the brightest talents, train them intensively, and then, after a few years, send many of them packing? A recent study in the American Economic Review concludes that so-called adverse selection is not a flaw but rather a sign that the system is working precisely as intended.
Why top firms paradoxically fire good workers
