Team production, endogenous learning about abilities and career concerns

Evangelia Chalioti

European Economic Review, 2016, vol. 85, issue C, 229-244

Abstract: This paper studies career concerns in teams where the support a worker receives depends on fellow team members׳ efforts and abilities. In this setting, by exerting effort and providing support, a worker can influence her own and her teammates׳ project outputs in order to bias the learning process in her favor. To manipulate the market׳s assessment, we argue that in equilibrium, a worker has incentives to help or even sabotage her colleagues in order to signal that she is of higher ability. In a multiperiod stationary framework, we show that the stationary level of work effort is above and help effort is below their efficient levels.

Keywords: Career concerns; Team incentives; Incentives to help; incentives to sabotage (search for similar items in EconPapers)
JEL-codes: D83 J24 M54 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:85:y:2016:i:c:p:229-244

DOI: 10.1016/j.euroecorev.2016.01.007

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