Competitive Screening of a Heterogeneous Labor Force and Corporate Teamwork Attitude

Agnieszka Tymula

No 2013-18, Working Papers from University of Sydney, School of Economics

Abstract: The aim of this paper is to analyze the impact of competition on the structure of incentive schemes, workforce composition and the degree of cooperation within firms. We show that in equilibrium high-ability workers, in order to distinguish themselves from the less able workforce, choose the incentive schemes that strongly rely on their own as well as their teammates' performance. They work harder on their own task and are more team-oriented than less skilled workers. Our paper stresses the sorting role of the incentives and provides a rationale for the emergence of different corporate teamwork practices.

Date: 2013-11
New Economics Papers: this item is included in nep-hrm and nep-lab
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Citations: View citations in EconPapers (9)

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Journal Article: Competitive Screening of a Heterogeneous Labor Force and Corporate Teamwork Attitude (2017)
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