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

  • Grip Andries de
  • Sauermann Jan
  • Sieben Inge

    (ROA rm)

In this paper, we estimate tenure-performance profiles using unique panel data thatcontain detailed information on individual workers’performance. We find that 10per cent increase in tenure leads to an increase in performance of 5.5 per cent of astandard deviation. This translates to an average performance increase of about 75per cent within the first year of the employment relationship. Furthermore, we showthat there are peer effects in learning on-the-job: Workers placed in teams with moreexperienced and thus more productive peers perform significantly better than thoseplaced in teams with less experienced peers. An increase in the average team tenure byone standard deviation leads to an increase of 11 to 14 per cent of a standard deviationin performance.

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File URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:4b54c953-a8dc-4396-87c8-ba617c9296eb/datastreams/ASSET1/content
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Paper provided by Maastricht University, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 014.

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Date of creation: 2011
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Handle: RePEc:unm:umaror:2011014
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  1. Grip Andries de & Sauermann Jan, 2011. "The Effects of Training on Own and Co-Worker Productivity: Evidence from a Field Experiment," Research Memorandum 044, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  2. Alexandre Mas & Enrico Moretti, 2009. "Peers at Work," American Economic Review, American Economic Association, vol. 99(1), pages 112-45, March.
  3. Peter Thompson, 2001. "How Much Did the Liberty Shipbuilders Learn? New Evidence for an Old Case Study," Journal of Political Economy, University of Chicago Press, vol. 109(1), pages 103-137, February.
  4. 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.
  5. Bruce Sacerdote, 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 681-704.
  6. 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.
  7. Steven D. Levitt & John A. List & Chad Syverson, 2012. "Toward an Understanding of Learning by Doing: Evidence from an Automobile Assembly Plant," NBER Working Papers 18017, National Bureau of Economic Research, Inc.
  8. Xiangmin Liu & Rosemary Batt, 2007. "The Economic Pay-Offs to Informal Training: Evidence from Routine Service Work," ILR Review, Cornell University, ILR School, vol. 61(1), pages 75-89, October.
  9. Shaw, Kathryn & Lazear, Edward P., 2008. "Tenure and output," Labour Economics, Elsevier, vol. 15(4), pages 704-723, August.
  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. Sherwin Rosen, 1972. "Learning and Experience in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 7(3), pages 326-342.
  12. repec:hal:journl:halshs-00304283 is not listed on IDEAS
  13. C. Kirabo Jackson & Elias Bruegmann, 2009. "Teaching Students and Teaching Each Other: The Importance of Peer Learning for Teachers," NBER Working Papers 15202, National Bureau of Economic Research, Inc.
  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. Armin Falk & Andrea Ichino, 2004. "Clean Evidence on Peer Effects," Levine's Bibliography 666156000000000439, UCLA Department of Economics.
  16. Destré, Guillaume & Lévy-Garboua, Louis & Sollogoub, Michel, 2008. "Learning from experience or learning from others?: Inferring informal training from a human capital earnings function with matched employer-employee data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(3), pages 919-938, June.
  17. Avdic, Daniel & Lundborg, Petter & Vikström, Johan, 2014. "Learning-by-Doing in a High-Skill Profession when Stakes are High: Evidence from Advanced Cancer Surgery," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100278, Verein für Socialpolitik / German Economic Association.
  18. Angrist, Joshua D., 2014. "The perils of peer effects," Labour Economics, Elsevier, vol. 30(C), pages 98-108.
  19. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 531-542.
  20. 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.
  21. Joseph G. Altonji & Robert A. Shakotko, 1987. "Do Wages Rise with Job Seniority?," Review of Economic Studies, Oxford University Press, vol. 54(3), pages 437-459.
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  23. Ichino, A. & Flabbi, L., 1998. "Productivity, Seniority and Wages. New Evidence form Personnel Data," Economics Working Papers eco98/11, European University Institute.
  24. 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.
  25. Avdic, Daniel & Lundborg, Petter & Vikström, Johan, 2014. "Learning-by-Doing in a Highly Skilled Profession when Stakes are High: Evidence from Advanced Cancer Surgery," Working Paper Series, Center for Labor Studies 2014:9, Uppsala University, Department of Economics.
  26. 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.
  27. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
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  29. repec:ecj:econjl:v:122:y:2012:i::p:376-399 is not listed on IDEAS
  30. Rosemary Batt & David Holman & Ursula Holtgrewe, 2009. "The Globalization of Service Work: Comparative Institutional Perspectives on Call Centers," ILR Review, Cornell University, ILR School, vol. 62(4), pages 453-488, July.
  31. 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.
  32. 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.
  33. Kostiuk, Peter F & Follmann, Dean A, 1989. "Learning Curves, Personal Characteristics, and Job Performance," Journal of Labor Economics, University of Chicago Press, vol. 7(2), pages 129-46, April.
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