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Interactions between Workers and the Technology of Production: Evidence from Professional Baseball

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Author Info
Eric D Gould (Hebrew University, Shalem Center, CEPR, and IZA)
Eyal Winter (Hebrew University)

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Abstract

This paper shows that workers can affect the productivity of their coworkers based on income maximization considerations, rather than relying on behavioral considerations such as peer pressure, social norms, and shame. We show that a worker's effort has a positive effect on the effort of coworkers if they are complements in production, and a negative effect if they are substitutes. The theory is tested using a panel data set of baseball players from 1970 to 2003. The results are consistent with the idea that the effort choices of workers interact in ways that are dependent on the technology of production. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/rest.91.1.188
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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 91 (2009)
Issue (Month): 1 (09)
Pages: 188-200
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Handle: RePEc:tpr:restat:v:91:y:2009:i:1:p:188-200

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References listed on IDEAS
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.:
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  4. Eyal Winter, 2004. "Incentives and Discrimination," American Economic Review, American Economic Association, vol. 94(3), pages 764-773, June. [Downloadable!]
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  5. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves And The Economic Success Of Immigrants - Evidence From A Natural Experiment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 329-357, February. [Downloadable!] (restricted)
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  6. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2002. "New Evidence about Brown v. Board of Education: The Complex Effects of School Racial Composition on Achievement," NBER Working Papers 8741, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 507-48, May. [Downloadable!] (restricted)
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  15. Alexandre Mas & Enrico Moretti, 2006. "Peers at Work," IZA Discussion Papers 2292, Institute for the Study of Labor (IZA). [Downloadable!]
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  20. Eric D. Gould & Victor Lavy & M. Daniele Paserman, 2004. "Does Immigration Affect the Long-Term Educational Outcomes of Natives? Quasi-Experimental Evidence," NBER Working Papers 10844, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  21. 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)
  22. Eric Gould & Victor Lavy & Daniele M. Paserman, 2004. "Immigrating to Opportunity: Estimating The Effect of School Quality Using a Natural Experiment On Ethiopians in Israel," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 489-526, May. [Downloadable!] (restricted)
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  23. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Blackwell Publishing, vol. 60(3), pages 531-42, July. [Downloadable!] (restricted)
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(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. Gould, Eric D. & Kaplan, Todd R., 2008. "Learning Unethical Practices from a Co-worker: The Peer Effect of Jose Canseco," IZA Discussion Papers 3328, Institute for the Study of Labor (IZA). [Downloadable!]
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