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Network Effects on Worker Productivity

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  • Lindquist, Matthew
  • Sauermann, Jan
  • Zenou, Yves

Abstract

We use data from an in-house call center of a multi-national mobile network operator to study how co-worker productivity affects worker productivity via network effects. We also exploit data from a field experiment to analyze how exogenous changes in worker productivity due to on-the-job training affect co-worker productivity, including non-trained workers. We show that there are strong network effects in co-worker productivity. This effect is driven by conformist behavior. We also show that exposure to trained workers increases the productivity of non-trained workers. This effect works through strategic complementarities (knowledge spillovers). We demonstrate how our network model of worker productivity can be used to inform a variety of practical decisions faced by personnel managers including the design of optimal training policy.

Suggested Citation

  • Lindquist, Matthew & Sauermann, Jan & Zenou, Yves, 2015. "Network Effects on Worker Productivity," CEPR Discussion Papers 10928, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10928
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Beugnot, Julie & Fortin, Bernard & Lacroix, Guy & Villeval, Marie Claire, 2017. "Gender and Peer Effects in Social Networks," IZA Discussion Papers 10588, Institute for the Study of Labor (IZA).
    2. Laurent Bergé & Nicolas Carayol, GREThA, UMR CNRS 5113, Université de Bordeaux & Pascale Roux, 2017. "How do inventor networks affect urban invention?," CREA Discussion Paper Series 17-03, Center for Research in Economic Analysis, University of Luxembourg.
    3. Thomas Cornelissen, 2016. "Do social interactions in the workplace lead to productivity spillover among co-workers?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 314-314, November.
    4. Thomas Cornelissen & Christian Dustmann & Uta Schönberg, 2017. "Peer Effects in the Workplace," American Economic Review, American Economic Association, vol. 107(2), pages 425-456, February.
    5. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    6. Jackson, Matthew O. & Rogers, Brian & Zenou, Yves, 2016. "Networks: An economic perspective," CEPR Discussion Papers 11452, C.E.P.R. Discussion Papers.
    7. Julie Beugnot & Bernard Fortin & Guy Lacroix & Marie Claire Villeval, 2017. "Gender and Peer Effects on Performance in Social Networks," Working Papers 1711, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.

    More about this item

    Keywords

    on-the-job training; peer effects; social networks; worker productivity;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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