IDEAS home Printed from https://ideas.repec.org/a/gam/jgames/v14y2023i3p44-d1156226.html
   My bibliography  Save this article

Training, Abilities and the Structure of Teams

Author

Listed:
  • Tobias Hiller

    (Department of Microeconomics, University of Leipzig, 04109 Leipzig, Germany)

Abstract

Training in firms has an effect on the productivity of employees who receive the training, and depending on the production technology, on the other employees as well. Meanwhile, changing the remuneration structure within a team can change the stability of a team. In this paper, we apply the production games approach of cooperative game theory to analyze how training employees affects the stability of team structures and employee wages. Concretely, we apply coalition structures and the χ value. Our results are in line with the literature and numerous further research questions can be addressed based on our approach.

Suggested Citation

  • Tobias Hiller, 2023. "Training, Abilities and the Structure of Teams," Games, MDPI, vol. 14(3), pages 1-8, May.
    • Handle: RePEc:gam:jgames:v:14:y:2023:i:3:p:44-:d:1156226
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-4336/14/3/44/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-4336/14/3/44/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jonathan Newton, 2018. "Evolutionary Game Theory: A Renaissance," Games, MDPI, vol. 9(2), pages 1-67, May.
    2. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-171, January.
    3. David J. Deming, 2022. "Four Facts about Human Capital," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 75-102, Summer.
    4. Michael Waldman & Ori Zax, 2020. "Promotion Signaling and Human Capital Investments," American Economic Journal: Microeconomics, American Economic Association, vol. 12(1), pages 125-155, February.
    5. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    6. P Jean-Jacques Herings & Riccardo D Saulle & Christian Seel, 2021. "The Last Will be First, and the First Last: Segregation in Societies with Relative Pay-off Concerns," The Economic Journal, Royal Economic Society, vol. 131(637), pages 2119-2143.
    7. Alison Watts, 2007. "Formation of segregated and integrated groups," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(4), pages 505-519, April.
    8. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    9. Lorne Carmichael, 1983. "Firm-Specific Human Capital and Promotion Ladders," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 251-258, Spring.
    10. Edward P. Lazear & Kathryn L. Shaw, 2007. "Personnel Economics: The Economist's View of Human Resources," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 91-114, Fall.
    11. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-1064, July.
    12. Ettore Damiano & Hao Li & Wing Suen, 2010. "First In Village Or Second In Rome?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 263-288, February.
    13. Tobias Hiller, 2022. "Abilities and the structure of the firm," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(3), pages 339-349, September.
    14. Casajus, André, 2009. "Outside options, component efficiency, and stability," Games and Economic Behavior, Elsevier, vol. 65(1), pages 49-61, January.
    15. Morelli, Massimo & Park, In-Uck, 2016. "Internal hierarchy and stable coalition structures," Games and Economic Behavior, Elsevier, vol. 96(C), pages 90-96.
    16. Edward P. Lazear, 2009. "Firm-Specific Human Capital: A Skill-Weights Approach," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 914-940, October.
    17. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-562, October.
    18. Abe, Takaaki, 2021. "Stability and values for games with coalition structures," Economics Letters, Elsevier, vol. 200(C).
    19. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-482, June.
    20. Daron Acemoglu, 1997. "Training and Innovation in an Imperfect Labour Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(3), pages 445-464.
    21. Harald Wiese, 2007. "Measuring The Power Of Parties Within Government Coalitions," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 307-322.
    22. Casajus, André & Kramm, Michael & Wiese, Harald, 2020. "Asymptotic stability in the Lovász-Shapley replicator dynamic for cooperative games," Journal of Economic Theory, Elsevier, vol. 186(C).
    23. Katz, Eliakim & Ziderman, Adrian, 1990. "Shared investment in general training : the role of information," Policy Research Working Paper Series 535, The World Bank.
    24. Casajus, André, 2008. "On the stability of coalition structures," Economics Letters, Elsevier, vol. 100(2), pages 271-274, August.
    25. Hiller, Tobias, 2017. "Quantitative overeducation and cooperative game theory," Economics Letters, Elsevier, vol. 152(C), pages 36-40.
    26. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    27. Shin-Hwan Chiang & Shih-Chen Chiang, 1990. "General Human Capital as a Shared Investment under Asymmetric Information," Canadian Journal of Economics, Canadian Economics Association, vol. 23(1), pages 175-188, February.
    28. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 135-153.
    29. Chang, Chun & Wang, Yijiang, 1996. "Human Capital Investment under Asymmetric Information: The Pigovian Conjecture Revisited," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 505-519, July.
    30. Edwin Leuven, 2005. "The Economics of Private Sector Training: A Survey of the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 91-111, February.
    31. Canice Prendergast, 1993. "The Role of Promotion in Inducing Specific Human Capital Acquisition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 523-534.
    32. , & ,, 2009. "Coalition formation under power relations," Theoretical Economics, Econometric Society, vol. 4(1), March.
    33. Yoshio Kamijo, 2009. "A Two-Step Shapley Value For Cooperative Games With Coalition Structures," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 207-214.
    34. Fella, Giulio, 2005. "Termination restrictions and investment in general training," European Economic Review, Elsevier, vol. 49(6), pages 1479-1499, August.
    35. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-1158, December.
    36. AUMANN, Robert J. & DREZE, Jacques H., 1974. "Cooperative games with coalition structures," LIDAM Reprints CORE 217, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    37. Jacob Mincer, 1962. "On-the-Job Training: Costs, Returns, and Some Implications," NBER Chapters, in: Investment in Human Beings, pages 50-79, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    2. Jung-Seung Yang, 2022. "Dynamics of Firm’s Investment in Education and Training: An Agent-based Approach," Computational Economics, Springer;Society for Computational Economics, vol. 60(4), pages 1317-1351, December.
    3. Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo.
    4. Edwin Leuven, 2005. "The Economics of Private Sector Training: A Survey of the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 91-111, February.
    5. Tobias Hiller, 2022. "Abilities and the structure of the firm," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(3), pages 339-349, September.
    6. repec:eee:labchp:v:3:y:1999:i:pb:p:2373-2437 is not listed on IDEAS
    7. Caliendo, Marco & Cobb-Clark, Deborah A. & Pfeifer, Harald & Uhlendorff, Arne & Wehner, Caroline, 2024. "Managers’ risk preferences and firm training investments," European Economic Review, Elsevier, vol. 161(C).
    8. Marco Caliendo & Deborah A. Cobb-Clark & Cosima Obst & Helke Seitz & Arne Uhlendorff, 2022. "Locus of Control and Investment in Training," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1311-1349.
    9. Dietz, Daniel & Zwick, Thomas, 2016. "The retention effect of training: Portability, visibility, and credibility," ZEW Discussion Papers 16-011, ZEW - Leibniz Centre for European Economic Research.
    10. Rao, Neel, 2015. "General training in labor markets: Common value auctions with unobservable investment," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 19-45.
    11. Michael Gerfin & Robert E. Leu & Reto Nyffeler, 2003. "Berufliche Weiterbildung in der Schweiz," Diskussionsschriften dp0318, Universitaet Bern, Departement Volkswirtschaft.
    12. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.
    13. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.
    14. Anke S. Kessler & Christoph Lülfesmann, 2006. "The Theory of Human Capital Revisited: on the Interaction of General and Specific Investments," Economic Journal, Royal Economic Society, vol. 116(514), pages 903-923, October.
    15. Picchio, Matteo & van Ours, Jan C., 2011. "Market imperfections and firm-sponsored training," Labour Economics, Elsevier, vol. 18(5), pages 712-722, October.
    16. Sauermann, Jan, 2006. "Who Invests in Training if Contracts are Temporary? - Empirical Evidence for Germany Using Selection Correction," IWH Discussion Papers 14/2006, Halle Institute for Economic Research (IWH).
    17. Cecilia ALBERT & Carlos GARCÍA-SERRANO & Virginia HERNANZ, 2010. "On-the-job training in Europe: Determinants and wage returns," International Labour Review, International Labour Organization, vol. 149(3), pages 315-341, September.
    18. Takaaki Abe, 2018. "Stable coalition structures in symmetric majority games: a coincidence between myopia and farsightedness," Theory and Decision, Springer, vol. 85(3), pages 353-374, October.
    19. Alison L. Booth & Pamela Katic, 2011. "Men at Work in a Land Down‐Under: Testing Some Predictions of Human Capital Theory," British Journal of Industrial Relations, London School of Economics, vol. 49(1), pages 1-24, March.
    20. Thomas J. Carter, 2021. "Delayed firm‐paid general training," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 937-951, January.
    21. Abe, Takaaki, 2021. "Stability and values for games with coalition structures," Economics Letters, Elsevier, vol. 200(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jgames:v:14:y:2023:i:3:p:44-:d:1156226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.