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Peer effects in the hierarchy: Evidence from the workplace

Author

Listed:
  • Jin, Miao
  • Liu, Yu-Jane
  • Meng, Juanjuan
  • Zhang, Yu

Abstract

This paper studies consumption peer effect and its relation to promotion from a unique hierarchical perspective, using credit card data of employees in the workplace. We show that one's consumption is significantly influenced by coworkers at the same or higher levels, with a stronger peer effect observed among those who are more likely to be promoted. We also find that the peer effect rises before and falls after a promotion event for the promoted workers. These results highlight the interplay between peer effects and hierarchy within the firm.

Suggested Citation

  • Jin, Miao & Liu, Yu-Jane & Meng, Juanjuan & Zhang, Yu, 2025. "Peer effects in the hierarchy: Evidence from the workplace," Journal of Economic Behavior & Organization, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:jeborg:v:231:y:2025:i:c:s0167268125000526
    DOI: 10.1016/j.jebo.2025.106932
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    More about this item

    Keywords

    Peer effect; Hierarchy; Promotion;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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