Adverse selection is more likely when

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Adverse selection occurs when one party has better information than the other party. In the case of a job requiring intangible or unmeasurable abilities, the employer may not have complete information about the employee's qualifications and may therefore experience adverse selection. This is because the employee may be able to exaggerate their abilities or qualifications, which can lead to a mismatch between the employer's expectations and the employee's actual abilities.

Adverse Selection Is More Likely When