B. To which workers should the best bosses be assigned ? Do good bosses improve productivity more for the best workers or more for the worst workers.
C. Workers are Additive, Bosses are Multiplicative.
For instance Why is a research scientist who makes a great breakthrough so valuable to a firm? It is because the innovation enhances the productivity of a large no of workers.
The effect is multiplied by the number of workers that the innovation affects.
The effect of worker talent on output is just the effect itself, whereas the effect of the bosses talent on output is multiplied by the number of individuals supervised.
Workers switch bosses about about four times per year. It is switches to different bosses that permits estimation of the effect of bosses on worker’s productivity.