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

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Author Info

  • 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. Jonathan Guryan & Kory Kroft & Matt Notowidigdo, 2007. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," NBER Working Papers 13422, National Bureau of Economic Research, Inc.
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  3. Andries De Grip & Jan Sauermann, 2012. "The Effects of Training on Own and Co‐worker Productivity: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 122(560), pages 376-399, 05.
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  6. Bruce Sacerdote, 2000. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," NBER Working Papers 7469, National Bureau of Economic Research, Inc.
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  8. 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, number ojt.
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  18. repec:ecj:econjl:v:122:y:2012:i::p:376-399 is not listed on IDEAS
  19. 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, vol. 32(11), pages 1371-1388, November.
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