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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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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
Date of revision:
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. Jonathan Guryan & Kory Kroft & Matt Notowidigdo, 2007. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," NBER Working Papers 13422, National Bureau of Economic Research, Inc.
  3. 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.
  4. Joseph G. Altonji & Nicolas Williams, 2005. "Do Wages Rise with Job Seniority? A Reassessment," ILR Review, Cornell University, ILR School, vol. 58(3), pages 370-397, April.
  5. 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.
  6. Shaw, Kathryn & Lazear, Edward P., 2008. "Tenure and output," Labour Economics, Elsevier, vol. 15(4), pages 704-723, August.
  7. 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.
  8. 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.
  9. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009. "Social Incentives in the Workplace," IZA Discussion Papers 4190, Institute for the Study of Labor (IZA).
  10. 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.
  11. 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.
  12. Flabbi, Luca & Ichino, Andrea, 2001. "Productivity, seniority and wages: new evidence from personnel data," Labour Economics, Elsevier, vol. 8(3), pages 359-387, June.
  13. Manski, C.F., 1991. "Identification of Endogenous Social Effects: the Reflection Problem," Working papers 9127, Wisconsin Madison - Social Systems.
  14. repec:ecj:econjl:v:122:y:2012:i::p:376-399 is not listed on IDEAS
  15. 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.
  16. 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.
  17. 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.
  18. 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).
  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. 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.
  21. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
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