Teamwork and Human Capital Development

Abstract

This study investigates how teamwork influences students’ human capital, which is defined to be academic performance and personality traits. In a rural county in China, we randomly select classes in elementary schools and form small teams within the treatment classes. Team members need to complete team activities. We find that the act of forming teams can significantly improve students’ academic performance. Teamwork also causes substantial changes in noncognitive skills. Students in the treatment classes achieve higher scores in conscientiousness, extraversion, openness, and neuroticism but lower scores in agreeableness. These changes indicate a higher level of performance motivation.