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

  • Grip Andries de
  • Sauermann Jan
  • Sieben Inge


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
Date of revision:
Handle: RePEc:unm:umamet:2011052
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  1. 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.
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  3. 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).
  4. 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.
  5. 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.
  6. Zimmerman, David J., 1999. "Peer Effects in Academic Outcomes: Evidence From a Natural Experiment," Williams Project on the Economics of Higher Education DP-52, Department of Economics, Williams College.
  7. Grip Andries de & Sauermann Jan, 2011. "The effects of training on own and co-worker productivity: evidence from a field experiment," ROA Research Memorandum 009, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  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. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2010. "Social Incentives in the Workplace," Review of Economic Studies, Oxford University Press, vol. 77(2), pages 417-458.
  10. Harminder Battu & Clive R. Belfield & Peter J. Sloane, 2003. "Human Capital Spillovers within the Workplace: Evidence for Great Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 575-594, December.
  11. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
  12. Armin Falk & Andrea Ichino, 2004. "Clean Evidence on Peer Effects," Levine's Bibliography 666156000000000439, UCLA Department of Economics.
  13. 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.
  14. Jonathan Guryan & Kory Kroft & Matthew J. Notowidigdo, 2009. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 34-68, October.
  15. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
  16. 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.
  17. 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.
  18. Shaw, Kathryn & Lazear, Edward P., 2008. "Tenure and output," Labour Economics, Elsevier, vol. 15(4), pages 704-723, August.
  19. 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.
  20. 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.
  21. repec:ecj:econjl:v:122:y:2012:i::p:376-399 is not listed on IDEAS
  22. 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.
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