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Peer Effects in the Decision to Apply for a Professional Excellence Award

Author

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  • Berlinski, Samuel
  • Ramos, Alejandra

Abstract

We study the role social interactions at the workplace play in the decision to apply for a professional recognition program. In Chile, teachers can apply to a pedagogical excellence award. Successful applicants receive a wage increase and are publicly recognized. We exploit the quasi-random variation in the allocation of awards generated by a sharp assignment rule. We document that the success of an applicant increases her school colleagues' application rate to the program by almost 75 percent. The impact is higher for colleagues with closer interaction with a successful applicant. We speculate on social learning as a driver of this result.

Suggested Citation

  • Berlinski, Samuel & Ramos, Alejandra, 2020. "Peer Effects in the Decision to Apply for a Professional Excellence Award," IDB Publications (Working Papers) 10548, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:10548
    DOI: http://dx.doi.org/10.18235/0002600
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    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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