Promotions and the Peter Principle

We thank Lisa Kahn, Steve Kaplan, Eddie Lazear, Inessa Liskovich (discussant), Vladimir Mukharlyamov (discussant), Paige Ouimet (discussant), Michaela Pagel (discussant), Amanda Pallais, Brian Phelan, Thomas Peeters, Lamar Pierce, Felipe Severino (discussant), Kathryn Shaw (discussant), Mike Waldman, and seminar participants at CUHK, FOM Conference, GSU CEAR, Gerzensee ESSFM, Harvard Business School, HKUST, Hong Kong U., ITAM, Melbourne FIRCG, MIT Sloan, Midwest Economics Association Meetings, Nanjing U., NBER (Corporate Finance, Personnel Economics, and Organizational Economics), Purdue, SOLE, Tsinghua PBC, U. of Chicago, U. of Hong Kong, U. of Miami, U. of Minnesota Carlson, Wharton People Analytics Conference, Wharton People \& Organizations conference, and Yale Junior Finance Conference for helpful comments. We thank Menaka Hamplole and Leland Bybee for excellent research assistance. This research was funded in part by the Initiative on Global Markets and the Fama Miller Center at the University of Chicago Booth School of Business. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.