Sikdar, S (2015) On efforts in teams with stereotypes. Economics Letters, 137. pp. 203-207. ISSN 1873-7374

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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.

Item Type: Article
Additional Information: This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was published as Sikdar, S., 2015. On efforts in teams with stereotypes. Economics Letters, 137, pp.203–207, available at:
Uncontrolled Keywords: Stereotype, Peer effect, Team production, Sequential effort contribution
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Humanities and Social Sciences > Keele Management School
Depositing User: Symplectic
Date Deposited: 07 Jun 2016 14:12
Last Modified: 12 Feb 2021 09:00

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