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Does Increased Exposure to Peers with Adverse Characteristics Reduce Workplace Performance? Evidence from a Natural Experiment in the US Army

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  • Francis X. Murphy

Abstract

While much research has investigated peer effects in education, less is known about peer influence at work, particularly how bad peers affect other workers. I study soldiers during a time when the US Army granted large numbers of morality waivers to recruits with felony or misdemeanor convictions that normally preclude enlistment. I find that soldiers randomly assigned to larger shares of peers with criminal backgrounds are more likely to commit major misconduct. Additionally, that misconduct often occurs in the same month a waivered peer commits misconduct, suggesting that influence occurs through both exposure to adverse peers and their contemporaneous behavior.

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  • Francis X. Murphy, 2019. "Does Increased Exposure to Peers with Adverse Characteristics Reduce Workplace Performance? Evidence from a Natural Experiment in the US Army," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 435-466.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/700187
    DOI: 10.1086/700187
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    Cited by:

    1. Kasper Regenburg & Morten Nicklas Bigler Seitz, 2021. "Criminals, bankruptcy, and cost of debt," Review of Accounting Studies, Springer, vol. 26(3), pages 1004-1045, September.
    2. Alexandra E. Hill & Jesse Burkhardt, 2021. "Peers in the Field: The Role of Ability and Gender in Peer Effects among Agricultural Workers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 790-811, May.
    3. Ozkan Eren & Naci H. Mocan, 2020. "Judge Peer Effects in the Courthouse," NBER Working Papers 27713, National Bureau of Economic Research, Inc.
    4. Lindquist, Matthew J. & Zenou, Yves, 2019. "Crime and Networks: 10 Policy Lessons," IZA Discussion Papers 12534, Institute of Labor Economics (IZA).
    5. KAWATA Yuji & OWAN Hideo, 2020. "Peer Effects on Job Satisfaction from Exposure to Elderly Workers," Discussion papers 20084, Research Institute of Economy, Trade and Industry (RIETI).
    6. Chesney, Alexander J., 2022. "Should I get a master’s degree?," Economics of Education Review, Elsevier, vol. 91(C).
    7. Stephen F. Hamilton & Timothy J. Richards & Aric P. Shafran & Kathryn N. Vasilaky, 2022. "Farm labor productivity and the impact of mechanization," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1435-1459, August.
    8. Bethencourt, Carlos & Kunze, Lars, 2022. "The economics of crime and socialization: The role of the family," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 579-597.
    9. Mocan, Naci & Osborne-Christenson, Eric, 2022. "In-Group Favoritism and Peer Effects in Wrongful Acquittals: NBA Referees as Judges," IZA Discussion Papers 15195, Institute of Labor Economics (IZA).
    10. Kawata, Yuji & Owan, Hideo, 2022. "Peer effects on job satisfaction from exposure to elderly workers," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).

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