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Skill Diversity and Leadership in Team Production

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Using a team production model with heterogeneous workers, we investigate the short- and long-run efficiency effects of skill diversity and leadership in teams. Our analysis focuses on the effects of various team structures on workers' incentives to change their skills or motivation. In the short run, heterogeneous pairing yields greater total production than homogeneous pairing. However, in the long run, homogeneous pairing may yield greater total production because of gradual improvements in workers' skills/motivation. We also show that the presence of leadership may yield greater production in the long run by preventing workers from continually reducing their skill/motivation.
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Keywords: EFFICIENT ROLE ASSIGNMENT; LEADERSHIP; TEAM PRODUCTION; VOLUNTARY PROVISION OF PUBLIC GOODS; WORKER MOTIVATION

Document Type: Research Article

Publication date: 01 June 2018

This article was made available online on 28 July 2017 as a Fast Track article with title: "Skill Diversity and Leadership in Team Production".

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  • Founded as Zeitschrift für die gesamte Staatswissenschaft in 1844.

    As one of the oldest journals in the field of political economy, the Journal of Institutional and Theoretical Economics (JITE) deals traditionally with the problems of economics, social policy, and their legal framework. JITE is listed in the Journal of Economic Literature, the Social Science Citation Index, the International Bibliography of the Social Sciences, and COREJ.

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    From 2013 on all accepted articles are published in an Online First version (in their final layout) to make them searchable and citable by their DOI immediately after peer review and acceptance. Once the article is published in an issue of the journal, the Online First version will be removed.

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