Peer Effects in the Workplace: A Network Approach

Matthew Lindquist, Jan Sauermann and Yves Zenou

No 15131, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study both endogenous and exogenous peer effects in worker productivity using an explicit network approach. We apply this method to data from an in-house call center of a multinational mobile network operator that include detailed information on individual performance. We find that a 10% increase in average co-worker current productivity increases worker productivity by 5.3%. A 10% increase in average co-worker permanent productivity decreases worker productivity by 3.2%. Older workers, low tenure workers, and low-permanent productivity workers respond the most to changes in co-worker productivity. These workers free ride in the presence of co-workers from the top quartile of the distribution of permanent productivity. Counterfactual exercises demonstrate how managers could mitigate the problem of free riding by re-shuffling workers into different co-worker networks.

Keywords: social networks; exogenous peer effects; endogenous peer effects; peer effects; worker productivity (search for similar items in EconPapers)
JEL-codes: J24 M50 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2022-03
New Economics Papers: this item is included in nep-eff, nep-hrm, nep-lma and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Network Effects on Worker Productivity (2015)
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