Cornelissen, T;
Dustmann, C;
Schonberg, U;
(2017)
Peer Effects in the Workplace.
American Economic Review
, 107
(2)
pp. 425-456.
10.1257/aer.20141300.
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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.
| Type: | Article |
|---|---|
| Title: | Peer Effects in the Workplace |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1257/aer.20141300 |
| Publisher version: | http://doi.org/10.1257/aer.20141300 |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery-pp.ucl.ac.uk/id/eprint/1559266 |
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