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Clean Evidence on Peer Effects

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  • Armin Falk
  • Andrea Ichino

Abstract

We study subjects who were asked to fill letters into envelopes with a remuneration independent of output. In the "pair" treatment, two subjects worked at the same time in the same room, and peer effects were possible. In the "single" treatment, subjects worked alone, and peer effects were ruled out. We find evidence of peer effects in the pair treatment because the standard deviations of output are smaller within pairs than between pairs. Moreover, average output is higher in the pair treatment: thus, peer effects raise productivity. Finally, low-productivity workers are the most sensitive to the behavior of peers.

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Paper provided by UCLA Department of Economics in its series Levine's Bibliography with number 666156000000000439.

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Date of creation: 05 Jan 2004
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Handle: RePEc:cla:levrem:666156000000000439

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