We analyse a model in which (1) managers require experience in order to be productive; (2) providing managers with experience is costly and noncontractible. We demonstrate that if there is an increase in the mobility of managers, there may be a free-riding problem, in that each firm has too...

Team production is increasingly common in bench science, because scientists specialize and then combine their skills in a team. We argue that team production makes it more difficult to identify the quality of a junior scientist, as her productivity cannot be perfectly distinguished from others...