Garicano, Luis; Hubbard, Thomas N. - University <Chicago, Ill.> / Department of Economics; … - 2005
Garicano and Rossi-Hansberg (2003) show that knowledge-based hierarchies arecharacterized by positive sorting between workers and managers when knowledgeacquisition takes place before production. We extend the analysis and find thatcomplementarities between manager and worker skill are even...