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

Author

Listed:
  • Michèle Breton
  • Pascal St-Amour
  • Désiré Vencatachellum

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.

Suggested Citation

  • Michèle Breton & Pascal St-Amour & Désiré Vencatachellum, 2002. "Inter- vs Intra-generational Production Teams: A Young Worker's Perspective," CIRANO Working Papers 2002s-57, CIRANO.
  • Handle: RePEc:cir:cirwor:2002s-57
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    File URL: http://www.cirano.qc.ca/files/publications/2002s-57.pdf
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    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    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.
    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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Heski Bar-Isaac, 2007. "Something to prove: reputation in teams," RAND Journal of Economics, RAND Corporation, vol. 38(2), pages 495-511, June.

    More about this item

    Keywords

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

    JEL classification:

    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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