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Peer Effects in the Workplace

Cornelissen, Thomas and Dustmann, Christian and Schönberg, Uta (2017) 'Peer Effects in the Workplace.' American Economic Review, 107 (2). 425 - 456. ISSN 0002-8282

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Abstract

Existing evidence on peer effects in the productivity of coworkers stems from either laboratory experiments or real-world studies referring to a specific firm or occupation. In this paper, we aim at providing more generalizable results by investigating a large local labor market, with a focus on peer effects in wages rather than productivity. Our estimation strategy--which links the average permanent productivity of workers' peers to their wages--circumvents the reflection problem and accounts for endogenous sorting of workers into peer groups and firms. On average over all occupations, and in the type of high-skilled occupations investigated in studies on knowledge spillover, we find only small peer effects in wages. In the type of low-skilled occupations analyzed in extant studies on social pressure, in contrast, we find larger peer effects, about one-half the size of those identified in similar studies on productivity.

Item Type: Article
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Elements
Date Deposited: 05 Feb 2020 13:40
Last Modified: 05 Feb 2020 14:15
URI: http://repository.essex.ac.uk/id/eprint/25719

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