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Interdependence in worker productivity

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Author Info
Joshua Herries (Sears, Roebuck and Co, 3333 Beverly Rd, E5-306B, Hoffman Estates, IL 60179, USA)
Daniel I. Rees (University of Colorado at Denver, Department of Economics, Campus Box 181, Denver, CO 80217, USA)
Jeffrey S. Zax (University of Colorado at Boulder, Boulder, CO, USA)
Abstract

This paper investigates interactions between co-worker productivity levels in a rich empirical context. Workers have unambiguous output measures, compensation that depends on individual and group output to differing degrees and potential peers beyond their immediate work group. Important productivity interdependencies exist, which could arise from the group-based component of compensation, peer pressure, common supervisors or information exchanges, but not group-based output or technological interdependence. Workers with the strongest individual incentives seem least sensitive to these interactions. In contrast, they are important to workers with no individual incentives. For these workers, peer pressure must be a powerful influence. Copyright © 2003 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jae.738
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File URL: http://qed.econ.queensu.ca:80/jae/2003-v18.5/
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 18 (2003)
Issue (Month): 5 ()
Pages: 585-604
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Handle: RePEc:jae:japmet:v:18:y:2003:i:5:p:585-604

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  2. Barron, John M & Gjerde, Kathy Paulson, 1997. "Peer Pressure in an Agency Relationship," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 234-54, April. [Downloadable!] (restricted)
  3. Carmichael, H Lorne & MacLeod, W Bentley, 2000. "Worker Cooperation and the Ratchet Effect," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 1-19, January. [Downloadable!] (restricted)
  4. Brock, William A. & Durlauf, Steven N., 2001. "Interactions-based models," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 54, pages 3297-3380 Elsevier. [Downloadable!] (restricted)
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  5. Daniel G. Hansen, 1997. "Work performance and group incentives: A case study," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 51(1), pages 37-49, October.
  6. Radner, Roy & Myerson, Roger & Maskin, Eric, 1986. "An Example of a Repeated Partnership Game with Discounting and with Uniformly Inefficient Equilibria," Review of Economic Studies, Blackwell Publishing, vol. 53(1), pages 59-69, January. [Downloadable!] (restricted)
  7. Drago, Robert & Garvey, Gerald T, 1998. "Incentives for Helping on the Job: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 1-25, January. [Downloadable!] (restricted)
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  13. Fehr, Ernst, et al, 1998. "When Social Norms Overpower Competition: Gift Exchange in Experimental Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 324-51, April. [Downloadable!] (restricted)
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  16. Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-17, August. [Downloadable!] (restricted)
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  17. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March. [Downloadable!] (restricted)
  18. Lazear, Edward P, 1986. "Salaries and Piece Rates," Journal of Business, University of Chicago Press, vol. 59(3), pages 405-31, July. [Downloadable!] (restricted)
  19. Charles Brown, 1990. "Firms' Choice of Method of Pay," NBER Working Papers 3065, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fabio Sabatini, 2005. "Does Social Capital Improve Labour Productivity in Small and Medium Enterprises?," Others 0508005, EconWPA. [Downloadable!]
  2. D'Haultfoeuille, Xavier & Davezies, Laurent & Fougère, Denis, 2006. "Identification of Peer Effects Using Group Size Variation," CEPR Discussion Papers 5865, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Fabio Sabatini, 2005. "Does Social Capital Improve Labour Productivity in Small and Medium Enterprises?," Others 0509011, EconWPA. [Downloadable!]
  4. Michelle Brown & John Heywood, 2009. "Helpless in Finance: The Cost of Helping Effort Among Bank Employees," Journal of Economic Interaction and Coordination, Springer, vol. 30(2), pages 176-195, June. [Downloadable!] (restricted)
    Other versions:
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