| By: |
Bertrand Candelon;
Arnaud Dupuy |
| Abstract: |
This paper proposes an equilibrium theory of the organization of work in an
economy with an implicit market for productive time. In this market, agents
buy or sell productive time. This implicit market gives rise to the formation
of teams, organized in hierarchies with one leader (buyer) at the top and
helpers (sellers) below. Relative to autarky, hierarchical organization leads
to higher within and between team payo¤s/productivity inequality. This
prediction is tested empir ically in the context of professional road cycling.
We show that the observed rise in performance inequality in the peloton since
the 1970s is merely due to a rise in help intensity within team and consistent
with a change in the hierarchical organization of teams. |
| Keywords: |
Hierarchical organization, productive time, helping time,inequality, professional cycling. |
| JEL: |
D2 D3 L22 |
| Date: |
2014–01–06 |
| URL: |
https://d.repec.org/n?u=RePEc:ipg:wpaper:2014-044 |