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Quitting and peer effects at work

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  • Rosaz, Julie
  • Slonim, Robert
  • Villeval, Marie Claire

Abstract

This paper studies the influence of peers on the extensive margin of effort at work by means of a real-effort experiment in which subjects have to decide on the intensity of effort and when to stop working. Participants perform a task alone or in the presence of a peer. The feedback on the co-worker's output is manipulated and we vary whether the two workers can communicate. We find that when communication is allowed, the average productivity per unit of time and the quitting time are not increased but the presence of a peer causes workers to stay longer and to quit at more similar times. Peer effects on the extensive margin of effort derive more from a sociability effect, i.e. a reduction of the social distance between co-workers that could make the other's presence more valuable, than from performance or quitting time comparisons.

Suggested Citation

  • Rosaz, Julie & Slonim, Robert & Villeval, Marie Claire, 2016. "Quitting and peer effects at work," Labour Economics, Elsevier, vol. 39(C), pages 55-67.
    • Handle: RePEc:eee:labeco:v:39:y:2016:i:c:p:55-67
    DOI: 10.1016/j.labeco.2016.02.002
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    2. Zheng, Hongyun & Vatsa, Puneet & Ma, Wanglin & Zhou, Xiaoshou, 2023. "Working hours and job satisfaction in China: A threshold analysis," China Economic Review, Elsevier, vol. 77(C).
    3. Gerhards, Leonie & Gravert, Christina, 2020. "Because of you I did not give up – Peer effects in perseverance," Journal of Economic Psychology, Elsevier, vol. 81(C).
    4. Brice Corgnet, 2018. "Rac(g)e Against the Machine? Social Incentives When Humans Meet Robots," Post-Print halshs-01984467, HAL.
    5. Sebastian J. Goerg & Sebastian Kube & Jonas Radbruch, 2019. "The Effectiveness of Incentive Schemes in the Presence of Implicit Effort Costs," Management Science, INFORMS, vol. 65(9), pages 4063-4078, September.
    6. David Gill & Zdenka Kissová & Jaesun Lee & Victoria Prowse, 2019. "First-Place Loving and Last-Place Loathing: How Rank in the Distribution of Performance Affects Effort Provision," Management Science, INFORMS, vol. 65(2), pages 494-507, February.
    7. Mathieu Lefebvre & Pierre Pestieau & Arno Riedl & Marie Villeval, 2015. "Tax evasion and social information: an experiment in Belgium, France, and the Netherlands," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 401-425, June.
    8. Benistant, Julien & Galeotti, Fabio & Villeval, Marie Claire, 2021. "The Distinct Impact of Information and Incentives on Cheating," IZA Discussion Papers 14014, Institute of Labor Economics (IZA).
    9. Albert, Philipp & Kübler, Dorothea & Silva-Goncalves, Juliana, 2022. "Peer effects of ambition," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 161-195.
    10. Bicchieri, Cristina & Dimant, Eugen & Gächter, Simon & Nosenzo, Daniele, 2022. "Social proximity and the erosion of norm compliance," Games and Economic Behavior, Elsevier, vol. 132(C), pages 59-72.
    11. Sausgruber, Rupert & Sonntag, Axel & Tyran, Jean-Robert, 2021. "Disincentives from redistribution: evidence on a dividend of democracy," European Economic Review, Elsevier, vol. 136(C).
    12. Lukas Kiessling & Jonas Radbruch & Sebastian Schaube, 2022. "Self-Selection of Peers and Performance," Management Science, INFORMS, vol. 68(11), pages 8184-8201, November.
    13. Benistant, Julien & Galeotti, Fabio & Villeval, Marie Claire, 2022. "Competition, information, and the erosion of morals," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 148-163.
    14. Simone Haeckl & Rupert Sausgruber & Jean-Robert Tyran, 2018. "Work Motivation and Teams," Discussion Papers 18-08, University of Copenhagen. Department of Economics.
    15. Ertac, Seda & Gümren, Mert & Koçkesen, Levent, 2019. "Strategic feedback in teams: Theory and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 1-23.
    16. Buechel, Berno & Mechtenberg, Lydia & Petersen, Julia, 2018. "If I can do it, so can you! Peer effects on perseverance," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 301-314.
    17. Erkal, Nisvan & Gangadharan, Lata & Koh, Boon Han, 2018. "Monetary and non-monetary incentives in real-effort tournaments," European Economic Review, Elsevier, vol. 101(C), pages 528-545.
    18. Kangsik Choi & Jae-Joon Han & Minhwan Lee, 2018. "Peer Pressure with Inequity Aversion," Korean Economic Review, Korean Economic Association, vol. 34, pages 131-155.

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    More about this item

    Keywords

    Quitting; Peer effects; Effort; Communication; Working time; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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