On efforts in teams with stereotypes

Sikdar

doi:10.1016/j.econlet.2015.10.032

On efforts in teams with stereotypes

Sikdar

Authors

Shiva Sikdar s.sikdar@keele.ac.uk

Abstract

Diversity in the workplace implies a balance in positions held by different social groups in organizations. We analyze the effect of negative stereotypes about the abilities of individuals from disadvantaged backgrounds on efforts and outcomes in teams. A project’s success depends on the abilities and efforts of agents from different backgrounds. Under simultaneous effort contribution, the stereotype lowers efforts of all agents and the project’s success chance. When the principal assigns the disadvantaged/stereotyped agent as leader in effort contribution, the effect of the stereotype is mitigated and the project’s success chance is the highest; this also maximizes the principal’s expected payoff. Although the principal offers symmetric incentives, the stereotyped agent often exerts higher effort.

Acceptance Date	Oct 23, 2015
Publication Date	Oct 29, 2015
Journal	Economics Letters
Print ISSN	0165-1765
Publisher	Elsevier
Pages	203-207
DOI	https://doi.org/10.1016/j.econlet.2015.10.032
Keywords	Stereotype, Peer effect, Team production, Sequential effort contribution
Publisher URL	http://dx.doi.org/10.1016/j.econlet.2015.10.032