Worker Self-Selection and the Profits from Cooperation
We investigate a competitive labor market with team production. Workers differ in their motivation to exert team effort and types are private information. We show that there can exist a separating equilibrium in which workers self-select into different firms and firms employing cooperative workers make strictly positive profits. Profit differences across firms persist because cooperation strictly increases output and worker separation requires firms employing cooperative workers to pay out weakly lower wages.
|Date of creation:||Dec 2008|
|Date of revision:|
|Publication status:||published in: Journal of the European Economic Association, 2009, 7(2-3), 573 - 582|
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References listed on IDEAS
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- Simon Gächter & Christian Thöni, 2005.
"Social Learning and Voluntary Cooperation Among Like-Minded People,"
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- Jeffrey Carpenter & Erika Seki, 2005. "Do Social PreferencesIncrease Productivity? Field experimental evidence from fishermen in Toyoma Bay," Middlebury College Working Paper Series 0515, Middlebury College, Department of Economics.
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