This paper uses the random assignment of playing partners in professional golf tournaments to test for peer effects in the workplace. We find no evidence that the ability of playing partners affects the performance of professional golfers, contrary to recent evidence on peer effects in the workplace from laboratory experiments, grocery scanners, and soft-fruit pickers. In our preferred specification, we can rule out peer effects larger than 0.045 strokes for a one stroke increase in playing partners' ability, and the point estimates are small and actually negative. We offer several explanations for our contrasting findings: that workers seek to avoid responding to social incentives when financial incentives are strong; that there is heterogeneity in how susceptible individuals are to social effects and that those who are able to avoid them are more likely to advance to elite professional labor markets; and that workers learn with professional experience not to be affected by social forces. We view our results as complementary to the existing studies of peer effects in the workplace and as a first step towards explaining how these social effects vary across labor markets, across individuals and with changes in the form of incentives faced. In addition to the empirical results on peer effects in the workplace, we also point out that many typical peer effects regressions are biased because individuals cannot be their own peers, and suggest a simple correction.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
13422.
Length: Date of creation: Sep 2007 Date of revision: Handle: RePEc:nbr:nberwo:13422
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Find related papers by JEL classification: J01 - Labor and Demographic Economics - - General - - - Labor Economics: General J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
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Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995.
"Crime and Social Interactions,"
NBER Working Papers
5026, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Alexandre Mas & Enrico Moretti, 2006.
"Peers at Work,"
IZA Discussion Papers
2292, Institute for the Study of Labor (IZA).
[Downloadable!]
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Alexandre Mas & Enrico Moretti, 2006.
"Peers at Work,"
NBER Working Papers
12508, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
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