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Peers and Motivation at Work: Evidence from a Firm Experiment in Malawi

Author

Listed:
  • Lasse Brune
  • Eric Chyn
  • Jason Kerwin

Abstract

We study workplace peer effects by randomly varying work assignments at a tea estate in Malawi. We find that increasing mean peer ability by 10 percent raises productivity by 0.3 percent. This effect is driven by the responses of women. Neither production nor compensation externalities cause the effect because workers receive piece rates and do not work in teams. Additional analyses provide no support for learning or socialization as mechanisms. Instead, peer effects appear to operate through “motivation”—given the choice to be reassigned, most workers prefer working near high-ability coworkers because these peers motivate them to work harder.

Suggested Citation

  • Lasse Brune & Eric Chyn & Jason Kerwin, 2022. "Peers and Motivation at Work: Evidence from a Firm Experiment in Malawi," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1147-1177.
    • Handle: RePEc:uwp:jhriss:v:57:y:2022:i:4:p:1147-1177
    Note: DOI: 10.3368/jhr.57.4.0919-10416R2
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    File URL: http://jhr.uwpress.org/cgi/reprint/57/4/1147
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    Cited by:

    1. Maria De Paola & Roberto Nisticò & Vincenzo Scoppa, 2024. "Workplace Peer Effects in Fertility Decisions," CSEF Working Papers 714, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 01 Sep 2025.
    2. Kelly E. Carter, 2018. "The Effect of Labor-Management Complementarities on Production and Efficiency When Management Is Paid but Labor Is Not Paid," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(4), pages 535-557, September.
    3. Alexandra E. Hill & Jesse Burkhardt, 2021. "Peers in the Field: The Role of Ability and Gender in Peer Effects among Agricultural Workers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 790-811, May.
    4. Ben Sprung-Keyser & Sonya Porter, 2023. "The Economic Geography of Lifecycle Human Capital Accumulation: The Competing Effects of Labor Markets and Childhood Environments," Working Papers 23-54, Center for Economic Studies, U.S. Census Bureau.
    5. Ben Weidmann & David J. Deming, 2020. "Team Players: How Social Skills Improve Group Performance," NBER Working Papers 27071, National Bureau of Economic Research, Inc.
    6. Abi Adams-Prassl & Kristiina Huttunen & Emily Nix & Ning Zhang, 2024. "Violence against Women at Work," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 937-991.
    7. Arai, Natsuki & 荒井, 夏來 & Nakazawa, Nobuhiko & 中澤, 伸彦, 2021. "Does Working with a Future Executive Make Junior Employees More Likely to Be Promoted ?," Discussion Papers 2021-01, Graduate School of Economics, Hitotsubashi University.
    8. Chesney, Alexander J., 2022. "Should I get a master’s degree?," Economics of Education Review, Elsevier, vol. 91(C).
    9. Kamei, Kenju & Ashworth, John, 2023. "Peer learning in teams and work performance: Evidence from a randomized field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 413-432.
    10. Mongoljin Batsaikhan & Kenju Kamei, 2025. "Peer Interactions in Teams and their Spill-over Effect: Evidence from a Natural Field Experiment," Keio-IES Discussion Paper Series DP2025-008, Institute for Economics Studies, Keio University.
    11. Nix, Emily, 2020. "A researcher’s guide to the Swedish compulsory school reform," Working Paper Series 2020:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    12. Matteo Pazzona, 2022. "Peer interactions and performance in a high‐skilled labour market," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(4), pages 1087-1116, October.
    13. Natsuki Arai & Nobuhiko Nakazawa, 2025. "Long‐run peer effects and promotion: Evidence from 70‐plus years of career records in Japan," Economic Inquiry, Western Economic Association International, vol. 63(3), pages 740-758, July.
    14. Martin Chegere & Paolo Falco & Andreas Menzel, 2023. "Social Ties at Work and Effort Choice: Experimental Evidence from Tanzania," CERGE-EI Working Papers wp763, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    15. Daniel Herbst, 2025. "Insurance and Asymmetric Information in Wage Contracts: Evidence from an Online Experiment," CESifo Working Paper Series 11946, CESifo.
    16. Julián Messina & Anna Sanz-de-Galdeano & Anastasia Terskaya, 2023. "Birds of a Feather Earn Together. Gender and Peer Effects at the Workplace," Working Papers 2023/10, Institut d'Economia de Barcelona (IEB).
    17. Chegere, Martin J. & Falco, Paolo & Menzel, Andreas, 2024. "Social ties at work and effort choice: Experimental evidence from Tanzania," Journal of Development Economics, Elsevier, vol. 171(C).
    18. Danny Cohen-Zada & Itay Dayag & Naomi Gershoni, 2024. "Effort Peer Effects in Team Production: Evidence from Professional Football," Management Science, INFORMS, vol. 70(4), pages 2355-2381, April.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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