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Title:Coordination under the shadow of career concerns PDF Logo
Authors:Koch, Alexander K.
Morgenstern, Albrecht
Issue Date:2009
Series/Report no.:IZA discussion papers 4039
Abstract:To innovate, employees need to develop novel ideas and coordinate with each other to turn these ideas into better products and services. Work outcomes provide signals about employees' abilities to the labor market, and therefore career concerns arise. These can both be 'good' (enhancing incentives for effort in developing ideas) and 'bad' (preventing voluntary coordination). Our model shows how the firm designs its explicit incentive system and organizes work processes to take these conflicting forces into account. The comparative statics results suggest a link between the increased use of teams and recent changes in labor market returns to skills.
Subjects:Career concerns
group incentives
knowledge work
reputation
teams
JEL:D86
J30
L14
L20
M12
O30
Persistent Identifier of the first edition:urn:nbn:de:101:1-20090306325
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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