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

Author

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  • de Grip, Andries

    () (ROA, Maastricht University)

  • Sauermann, Jan

    () (SOFI, Stockholm University)

  • 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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6164
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. Andries de Grip, 2015. "The importance of informal learning at work," IZA World of Labor, Institute for the Study of Labor (IZA), pages 162-162, June.

    More about this item

    Keywords

    peer effects; learning on-the-job; experience; tenure-performance profiles; productivity; call centres;

    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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