American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Peers at Work
American Economic Review
vol. 99,
no. 1, March 2009
(pp. 112–45)
Abstract
We study peer effects in the workplace. Specifically, we investigate whether, how, and why the productivity of a worker depends on the productivity of coworkers in the same team. Using high-frequency data on worker productivity from a large supermarket chain, we find strong evidence of positive productivity spillovers from the introduction of highly productive personnel into a shift. Worker effort is positively related to the productivity of workers who see him, but not workers who do not see him. Additionally, workers respond more to the presence of coworkers with whom they frequently interact. We conclude that social pressure can partially internalize free-riding externalities that are built into many workplaces. (JEL J24, L81, M54)Citation
Mas, Alexandre, and Enrico Moretti. 2009. "Peers at Work." American Economic Review, 99 (1): 112–45. DOI: 10.1257/aer.99.1.112Additional Materials
JEL Classification
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- L81 Retail and Wholesale Trade; e-Commerce
- M54 Personnel Economics: Labor Management