We find … better managers tend to match with worse workers, & vice versa. This stands in contrast to our estimates of the production technology, which reveal that if the firm were to positively sort, productivity would increase by 1 to 4%" https://www.nber.org/papers/w27006
worst performing group wont hold up everything, because the other groups will be forced to do their job for them
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Yes, at a cost of productivity. Same thing is true in individual teams. Point is that it's not clear sorting into high and low prod teams is a net benefit if it only means that the high prod teams have to step outside their institutional expertise to do work of other teams.
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the paper cites 1-4% improvement for sorting its paywalled so i cant look at their methods, but presumably the authors were aware that making people work outside their expertise in inefficient
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