Competitive Screening of a Heterogeneous Labor Force and Corporate Teamwork Attitude

Agnieszka Tymula

Journal of Institutional and Theoretical Economics (JITE), 2017, vol. 173, issue 3, 523-547

Abstract: The aim of this paper is to analyze the influence of competition on the structure of incentive schemes, workforce composition, and the degree of cooperation within firms. We show that in equilibrium high-skilled workers, in order to distinguish themselves from the low-skilled, 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 low-skilled workers. Our paper stresses the sorting role of the incentives and provides a rationale for the emergence of different corporate teamwork practices.

JEL-codes: D2 D8 J2 J3 M5 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1628/093245616X14793640933401

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