We investigate the hypothesis that complementarities across co-workers (which may arise from matching or investments in specifc skills) affect the value of employment relationships between senior executives and firms. We analyze the changes in the composition of top management teams when a key...

We survey the Personnel Economics literature, focusing on how firms establish, maintain, and end employment relationships and on how firms provide incentives to employees. This literature has been very successful in generating models and empirical work about incentive systems. Some of the...