?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F43953%2F&rft.title=Shining+with+the+stars%3A+competition%2C+screening%2C+and+concern+for+coworkers'+quality&rft.creator=Barigozzi%2C+Francesca&rft.creator=Cremer%2C+Helmuth&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=We+study+how+workers%E2%80%99+concern+for+coworkers%E2%80%99+ability+(CfCA)+affects+competition+in+the+labor+market.+We+consider+two+firms+offering+nonlinear+contracts+to+a+unit+mass+of+prospective+workers.+Firms+may+differ+in+their+marginal+productivity%2C+while+workers+are+heterogeneous+in+their+ability+(high+or+low)%2C+and+in+their+taste+for+being+employed+by+any+of+the+two+firms.+Workers+receive+a+utility+premium+when+employed+by+the+firm+hiring+the+workforce+with+larger+average+ability+and+they+suffer+a+utility+loss+in+the+opposite+case.+These+premiums%2Flosses+are+endogenously+determined.+When+workers%E2%80%99+ability+is+observable+and+the+difference+in+firms%E2%80%99+marginal+productivities+is+strictly+positive%2C+we+show+that+CfCA+increases+surplus+but+it+also+increases+firms%E2%80%99+competition+for+high-ability+workers.+As+a+result%2C+CfCA+benefits+high-ability+workers+but+is+detrimental+to+firms.+In+addition%2C+CfCA+exacerbates+the+existing+distortion+in+sorting+of+high-ability+workers+to+firms%3A+too+many+workers+are+hired+by+the+least+efficient+firm.+When+ability+is+not+observable%2C+the+additional+surplus+appropriated+by+high-ability+workers+is+eroded+by+overincentivization+(countervailing+incentives)+and+the+more+so+when+CfCA+is+high.+Conversely%2C+high-types%E2%80%99sorting+improves+when+CfCA+is+low+and+remains+the+same+when+it+is+high.&rft.publisher=TSE+Working+Paper&rft.date=2021-11&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F43953%2F1%2Fwp_tse_1257.pdf&rft.identifier=++Barigozzi%2C+Francesca+%3Chttps%3A%2F%2Fwww.idref.fr%2F166363537%3E+and+Cremer%2C+Helmuth+%3Chttps%3A%2F%2Fwww.idref.fr%2F058485376%3E++(2021)+Shining+with+the+stars%3A+competition%2C+screening%2C+and+concern+for+coworkers'+quality.++TSE+Working+Paper%2C+n.+21-1257%2C+Toulouse%2C+France+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F126143&rft.language=en