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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)

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/pdf/10.1162/rest.91.1.188
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Bibliographic Info

Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 91 (2009)
Issue (Month): 1 (February)
Pages: 188-200

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Handle: RePEc:tpr:restat:v:91:y:2009:i:1:p:188-200

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Web page: http://mitpress.mit.edu/journals/

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References

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  1. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
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  4. Per-Anders Edin & Peter Fredriksson & Olof �slund, 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.
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  7. Oreopoulos, Philip, 2007. "The Long-Run Consequences of Living in a Poor Neighborhood," Berkeley Program on Housing and Urban Policy, Working Paper Series qt9np9p7m5, Berkeley Program on Housing and Urban Policy.
  8. Gould, Eric D & Lavy, Victor & Paserman, Marco Daniele, 2005. "Does Immigration Affect the Long-Term Educational Outcomes of Natives? Quasi-Experimental Evidence," CEPR Discussion Papers 5439, C.E.P.R. Discussion Papers.
  9. 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.
  10. Bruce Sacerdote, 2001. "Peer Effects With Random Assignment: Results For Dartmouth Roommates," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 681-704, May.
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  14. Kandel, E. & Lazear, E.P., 1990. "Peer Pressure and Partnerships," Papers 90-07, Rochester, Business - Managerial Economics Research Center.
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Citations

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Cited by:
  1. Qiang Fu & Changxia Ke & Fangfang Tan, 2013. ""Success breeds success" or "Pride goes before a fall"? Teams and Individuals in Best-of-Three Contests," Working Papers tax-mpg-rps-2013-06, Max Planck Institute for Tax Law and Public Finance.
  2. Sander Hoogendoorn & Simon C. Parker & Mirjam van Praag, 2014. "Ability Dispersion and Team Performance," Tinbergen Institute Discussion Papers 14-053/VII, Tinbergen Institute.
  3. Papps, Kerry L. & Bryson, Alex & Gomez, Rafael, 2011. "Heterogeneous worker ability and team-based production: Evidence from major league baseball, 1920-2009," Labour Economics, Elsevier, vol. 18(3), pages 310-319, June.
  4. Gould, Eric D & Kaplan, Todd, 2007. "Learning Unethical Practices from a Co-worker: The Peer Effect of Jose Canseco," CEPR Discussion Papers 6550, C.E.P.R. Discussion Papers.
  5. Sander Hoogendoorn & Simon C. Parker & Mirjam van Praag, 2012. "Ability Dispersion and Team Performance: A Field Experiment," Tinbergen Institute Discussion Papers 12-130/VII, Tinbergen Institute.
  6. repec:lan:wpaper:3944 is not listed on IDEAS
  7. Papps, Kerry L., 2010. "Productivity under Large Pay Increases: Evidence from Professional Baseball," IZA Discussion Papers 5133, Institute for the Study of Labor (IZA).
  8. R Simmons & D J Berri, 2010. "Mixing the princes and the paupers: Pay and performance in the National Basketball Association," Working Papers 611523, Lancaster University Management School, Economics Department.
  9. repec:dgr:uvatin:2012130 is not listed on IDEAS
  10. Cornelissen, Thomas & Dustmann, Christian & Schönberg, Uta, 2013. "Peer Effects in the Workplace," IZA Discussion Papers 7617, Institute for the Study of Labor (IZA).
  11. repec:lan:wpaper:3659 is not listed on IDEAS
  12. Natalia Montinari, 2011. "The Dark Side of Reciprocity," Jena Economic Research Papers 2011-052, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  13. Simmons, Rob & Berri, David J., 2011. "Mixing the princes and the paupers: Pay and performance in the National Basketball Association," Labour Economics, Elsevier, vol. 18(3), pages 381-388, June.
  14. Esteban Klor & Sebastian Kube & Eyal Winter & Ro'i Zultan, 2013. "Can Higher Rewards Lead To Less Effort? Incentive Reversal In Teams," Working Papers 1309, Ben-Gurion University of the Negev, Department of Economics.
  15. repec:lan:wpaper:3551 is not listed on IDEAS

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