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Skill Diversity and Leadership in Team Production

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  • Keisuke Hattori
  • Mai Yamada

Abstract

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.

Suggested Citation

  • Keisuke Hattori & Mai Yamada, 2018. "Skill Diversity and Leadership in Team Production," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 174(2), pages 351-374, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201806)172:2_351:sdalit_2.0.tx_2-u
    DOI: 10.1628/093245617X14996661407767
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    Cited by:

    1. Wolfgang Buchholz & Michael Eichenseer, 2019. "Advantageous leadership in public good provision: the case of an endogenous contribution technology," Journal of Economics, Springer, vol. 126(1), pages 1-17, January.
    2. Keisuke Hattori & Mai Yamada, 2020. "Effective Leadership Selection in Complementary Teams," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 176(4), pages 620-639.
    3. Hattori, Keisuke & Yamada, Mai, 2023. "Closing the Psychological Distance: The Effect of Social Interactions on Team Performance," MPRA Paper 117042, University Library of Munich, Germany.

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    More about this item

    Keywords

    team production; voluntary provision of public goods; leadership; efficient role assignment; worker motivation;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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