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The role of peers in estimating tenure-performance profiles: evidence from personnel data

  • Grip Andries de
  • Sauermann Jan
  • Sieben Inge

    (METEOR)

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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Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 052.

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Date of creation: 2011
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Handle: RePEc:unm:umamet:2011052
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  1. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  2. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009. "Social Incentives in the Workplace," IZA Discussion Papers 4190, Institute for the Study of Labor (IZA).
  3. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
  4. Andries De Grip & Jan Sauermann, 2012. "The Effects of Training on Own and Co‐worker Productivity: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 122(560), pages 376-399, 05.
  5. 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.
  6. Xiangmin Liu & Rosemary Batt, 2007. "The Economic Pay-Offs to Informal Training: Evidence from Routine Service Work," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(1), pages 75-89, October.
  7. Kathryn Shaw & Edward P. Lazear, 2007. "Tenure and Output," NBER Working Papers 13652, National Bureau of Economic Research, Inc.
  8. Flabbi, Luca & Ichino, Andrea, 2001. "Productivity, seniority and wages: new evidence from personnel data," Labour Economics, Elsevier, vol. 8(3), pages 359-387, June.
  9. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
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  12. repec:ecj:econjl:v:122:y:2012:i::p:376-399 is not listed on IDEAS
  13. David J. Zimmerman, 2003. "Peer Effects in Academic Outcomes: Evidence from a Natural Experiment," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 9-23, February.
  14. 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).
  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, November.
  16. Armin Falk & Andrea Ichino, 2006. "Clean Evidence on Peer Effects," Journal of Labor Economics, University of Chicago Press, vol. 24(1), pages 39-58, January.
  17. C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
  18. Vincent P. Carroll & Hau L. Lee & Ambar G. Rao, 1986. "Implications of Salesforce Productivity Heterogeneity and Demotivation: A Navy Recruiter Case Study," Management Science, INFORMS, vol. 32(11), pages 1371-1388, November.
  19. 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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