The keys to effective teamwork in firms are (1) carefully designed team-formation policies that take into account what … level of diversity of skills, knowledge, and demographics is desirable and (2) balanced team-based incentives. Employers … team-based incentives. …

In organizations, some team members are assigned to a team for a predefined short period of time, e.g., as they have a … temporary contract, while others are permanent members of the same team. In a laboratory experiment we analyze the cooperation … levels resulting from diverse teams, where some team members remain with a team and others are switching teams. Our results …