The role of peers in estimating tenure-performance profiles: evidence from personnel data
In this paper, we estimate tenure-performance pro les using unique panel data that containdetailed information on individual workers'' performance. We find that a 10 per cent increase intenure leads to an increase in performance of 5.5 per cent of a standard deviation. Thistranslates to an average performance increase of about 75 per cent within the first year of theemployment relationship. Furthermore, we show that there are peer e ffects in learning on-the-job:Workers placed in teams with more experienced and thus more productive peers performsigni ficantly better than those placed in teams with less experienced peers. An increase in theaverage team tenure by one standard deviation leads to an increase of 11 to 14 per cent of astandard deviation in performance.
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