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The Role of Peers in Estimating Tenure-Performance Profiles: Evidence from Personnel Data

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  • de Grip, Andries

    ()
    (ROA, Maastricht University)

  • Sauermann, Jan

    ()
    (SOFI, Stockholm University)

  • Sieben, Inge

    ()
    (Tilburg University)

Abstract

In this paper, we estimate tenure-performance profiles using unique panel data that contain detailed information on individual workers' performance. We find that a 10 per cent increase in tenure leads to an increase in performance of 5.5 per cent of a standard deviation. This translates to an average performance increase of about 75 per cent within the first year of the employment relationship. Furthermore, we show that there are peer effects in learning on-the-job: Workers placed in teams with more experienced and thus more productive peers perform significantly better than those placed in teams with less experienced peers. An increase in the average team tenure by one standard deviation leads to an increase of 11 to 14 per cent of a standard deviation in performance.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6164.

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Length: 34 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:iza:izadps:dp6164

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Keywords: tenure-performance profiles; experience; learning on-the-job; peer effects; productivity; call centres;

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  1. Bruce Sacerdote, 2000. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," NBER Working Papers 7469, National Bureau of Economic Research, Inc.
  2. Destré, Guillaume & Lévy-Garboua, Louis & Sollogoub, Michel, 2008. "Learning from experience or learning from others?: Inferring informal training from a human capital earnings function with matched employer-employee data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 37(3), pages 919-938, June.
  3. Jonathan Guryan & Kory Kroft & Matthew J. Notowidigdo, 2009. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 1(4), pages 34-68, October.
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  6. Flabbi, Luca & Ichino, Andrea, 1998. "Productivity, Seniority and Wages: New Evidence from Personnel Data," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1966, C.E.P.R. Discussion Papers.
  7. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(1), pages 1-19, January.
  8. Grip Andries de & Sauermann Jan, 2011. "The Effects of Training on Own and Co-Worker Productivity: Evidence from a Field Experiment," Research Memorandum 044, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  9. David J. Zimmerman, 2003. "Peer Effects in Academic Outcomes: Evidence from a Natural Experiment," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 9-23, February.
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  11. C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, American Economic Association, vol. 90(4), pages 1034-1054, September.
  12. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 66, pages 281.
  13. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, W.E. Upjohn Institute for Employment Research, number ojt.
  14. Xiangmin Liu & Rosemary Batt, 2007. "The Economic Pay-Offs to Informal Training: Evidence from Routine Service Work," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(1), pages 75-89, October.
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  17. repec:ecj:econjl:v:122:y:2012:i::p:376-399 is not listed on IDEAS
  18. Battu, Harminder & Belfield, Clive R. & Sloane, Peter J., 2001. "Human Capital Spill-Overs Within the Workplace," IZA Discussion Papers 404, Institute for the Study of Labor (IZA).
  19. Rebecca Achee Thornton & Peter Thompson, 2001. "Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding," American Economic Review, American Economic Association, American Economic Association, vol. 91(5), pages 1350-1368, December.
  20. Armin Falk & Andrea Ichino, 2006. "Clean Evidence on Peer Effects," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(1), pages 39-58, January.
  21. Vincent P. Carroll & Hau L. Lee & Ambar G. Rao, 1986. "Implications of Salesforce Productivity Heterogeneity and Demotivation: A Navy Recruiter Case Study," Management Science, INFORMS, INFORMS, vol. 32(11), pages 1371-1388, November.
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