G-2002-29
Inter- vs Intra-generational Production Teams: A Young Worker's Perspective
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We ask whether young agents prefer to work in different-age or same-age production pairs in an overlapping-generations model where wages are reputation-based. We find that inter-generational teams (i) produce more heterogeneity in the old workers' reputations, (ii) generate a greater share of wages that are close to workers' theoretical productivities, compared to intra-generational teams; and (iii) a high-productivity agent always prefers inter- to intra-generational teams, whereas the opposite holds for a low-productivity agent.
Published June 2002 , 20 pages
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