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Inter- vs Intra-generational Production Teams: A Young Worker's Perspective

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Author Info
Michèle Breton
Pascal St-Amour ()
Désiré Vencatachellum ()

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Abstract

We ask whether young agents prefer to work in different-age or same-age production pairs in an overlapping-generations model where wages are reputation-based. We find that inter-generational teams (i) produce more heterogeneity in the old workers' reputations, (ii) generate a greater share of wages that are close to workers' theoretical productivities, compared to intra-generational teams; and (iii) a high-productivity agent always prefers inter- to intra-generational teams, whereas the opposite holds for a low-productivity agent.

Ce document étudie les préférences des jeunes employés entre des équipes formées de travailleurs d'âges identiques, ou d'âges différents, dans un modèle à générations imbriquées et où les salaires dépendent de la réputation. Nos résultats indiquent que les équipes inter-générationnelles (i) résultent en une plus grande hétérogénéité dans les réputations des travailleurs plus âgés, (ii) génèrent des salaires qui sont plus proches des productivités théoriques et (iii) sont préférées par des travailleurs dont la productivité est élevée, alors que ceux dont la productivité est faible préfèrent les équipes intra-générationnelles.

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Publisher Info
Paper provided by CIRANO in its series CIRANO Working Papers with number 2002s-57.

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Date of creation: 01 Jun 2002
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Handle: RePEc:cir:cirwor:2002s-57

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Related research
Keywords: Adverse selection; Overlapping Generations; Reputation; Team production; Sélection adverse; générations imbriquées; réputation; production d'équipe;

Find related papers by JEL classification:
J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December. [Downloadable!] (restricted)
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  2. Breton, Michele & St-Amour, Pascal & Vencatachellum, Desire, 2003. "Dynamic production teams with strategic behavior," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 875-905, March. [Downloadable!] (restricted)
    Other versions:
  3. Emmanuelle Auriol & Guido Friebel & Lambros Pechlivanos, 2002. "Career Concerns in Teams," Journal of Labor Economics, University of Chicago Press, vol. 20(2), pages 289-307, Part. [Downloadable!]
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This page was last updated on 2009-11-20.


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