Peer interactions and performance in a high‐skilled labour market

Matteo Pazzona

Scandinavian Journal of Economics, 2022, vol. 124, issue 4, 1087-1116

Abstract: It is not clear whether interactions among superstar employees lead to an increase in productivity. Such interactions are relatively rare, and measuring productivity is challenging. In this paper, it is suggested that these difficulties can be overcome by analysing changes in the performance of elite National Basketball Association (NBA) players who participate in the Olympic Games. By using advanced individual performance measures, the study finds that these athletes experience an increase in performance of 7.1 percent in the season after the Games, compared with similar non‐Olympic athletes. The sharp discontinuity in peer quality experienced by the players is the most likely explanation for this increase.

Date: 2022
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