Peer effects in the hierarchy: Evidence from the workplace

Miao Jin, Yu-Jane Liu, Juanjuan Meng and Yu Zhang

Journal of Economic Behavior & Organization, 2025, vol. 231, issue C

Abstract: This paper studies consumption peer effect and its relation to promotion from a unique hierarchical perspective, using credit card data of employees in the workplace. We show that one's consumption is significantly influenced by coworkers at the same or higher levels, with a stronger peer effect observed among those who are more likely to be promoted. We also find that the peer effect rises before and falls after a promotion event for the promoted workers. These results highlight the interplay between peer effects and hierarchy within the firm.

Keywords: Peer effect; Hierarchy; Promotion (search for similar items in EconPapers)
JEL-codes: D12 D91 M51 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:231:y:2025:i:c:s0167268125000526

DOI: 10.1016/j.jebo.2025.106932

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