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

  • de Grip, Andries

    ()

    (ROA, Maastricht University)

  • Sauermann, Jan

    ()

    (SOFI, Stockholm University)

  • Sieben, Inge

    ()

    (Tilburg University)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6164.

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Length: 34 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:iza:izadps:dp6164
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  1. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
  2. Ichino, A. & Flabbi, L., 1998. "Productivity, Seniority and Wages. New Evidence form Personnel Data," Economics Working Papers eco98/11, European University Institute.
  3. Guillaume Destré & Louis Lévy-Garboua & Michel Sollogoub, 2008. "Learning from experience or learning from others? Inferring informal training from a human capital earnings function with matched employer–employee data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00304283, HAL.
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  5. Andries De Grip & Jan Sauermann, 2011. "The Effects of Training on Own and Co-Worker Productivity: Evidence from a Field Experiment," Economics of Education Working Paper Series 0067, University of Zurich, Institute for Strategy and Business Economics (ISU).
  6. Battu, Harminder & Belfield, Clive R. & Sloane, Peter J., 2001. "Human Capital Spill-Overs Within the Workplace," IZA Discussion Papers 404, Institute for the Study of Labor (IZA).
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  8. Armin Falk & Andrea Ichino, 2004. "Clean Evidence on Peer Effects," Levine's Bibliography 666156000000000439, UCLA Department of Economics.
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  15. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, March.
  16. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
  17. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009. "Social Incentives in the Workplace," IZA Discussion Papers 4190, Institute for the Study of Labor (IZA).
  18. Rebecca Achee Thornton & Peter Thompson, 2001. "Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding," American Economic Review, American Economic Association, vol. 91(5), pages 1350-1368, December.
  19. Bruce Sacerdote, 2001. "Peer Effects With Random Assignment: Results For Dartmouth Roommates," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 681-704, May.
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