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The Role of Peers in Estimating Tenure-Performance Profiles: Evidence from Personnel Data

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  • de Grip, Andries

    (ROA, Maastricht University)

  • Sauermann, Jan

    (IFAU)

  • Sieben, Inge

    (Tilburg University)

Abstract

In this paper, we estimate tenure-performance profiles using unique panel data that contain detailed information on individual workers' performance. We find that a 10 per cent increase in tenure leads to an increase in performance of 5.5 per cent of a standard deviation. This translates to an average performance increase of about 75 per cent within the first year of the employment relationship. Furthermore, we show that there are peer effects in learning on-the- job: Workers placed in teams with more experienced and thus more productive peers perform significantly better than those placed in teams with less experienced peers. An increase in the average team tenure by one standard deviation leads to an increase of 11 to 14 per cent of a standard deviation in performance.

Suggested Citation

  • de Grip, Andries & Sauermann, Jan & Sieben, Inge, 2011. "The Role of Peers in Estimating Tenure-Performance Profiles: Evidence from Personnel Data," IZA Discussion Papers 6164, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6164
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Andries de Grip, 2015. "The importance of informal learning at work," IZA World of Labor, Institute of Labor Economics (IZA), pages 162-162, June.
    3. Ferreira, Maria & de Grip, Andries & van der Velden, Rolf, 2018. "Does informal learning at work differ between temporary and permanent workers? Evidence from 20 OECD countries," Labour Economics, Elsevier, vol. 55(C), pages 18-40.
    4. de Grip, Andries & Pleijers, Astrid, 2019. "Workshop attendance as a mode of learning: Evidence from the Netherlands," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    5. Gerards, Ruud & de Grip, Andries & Weustink, A., 2018. "Do new ways of working increase informal learning?," Research Memorandum 010, Maastricht University, Graduate School of Business and Economics (GSBE).
    6. Victoria Sevcenko & Sendil Ethiraj, 2018. "How Do Firms Appropriate Value from Employees with Transferable Skills? A Study of the Appropriation Puzzle in Actively Managed Mutual Funds," Organization Science, INFORMS, vol. 29(5), pages 775-795, October.
    7. de Grip, Andries & Pleijers, Astrid, 2019. "Workshop attendance as a mode of learning:," Research Memorandum 024, Maastricht University, Graduate School of Business and Economics (GSBE).

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    More about this item

    Keywords

    peer effects; learning on-the-job; experience; tenure-performance profiles; productivity; call centres;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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