Clean evidence on peer effects
Journal of labor economics, 2006, 24, 1, 39-58
FALK, Armin, ICHINO, Andrea, Clean evidence on peer effects, Journal of labor economics, 2006, 24, 1, 39-58 - https://hdl.handle.net/1814/17488
Retrieved from Cadmus, EUI Research Repository
We study subjects who were asked to fill letters into envelopes with a remuneration independent of output. In the 'pair' treatment, two subjects worked at the same time in the same room, and peer effects were possible. In the 'single' treatment, subjects worked alone, and peer effects were ruled out. We find evidence of peer effects in the pair treatment because the standard deviations of output are smaller within pairs than between pairs. Moreover, average output is higher in the pair treatment: thus, peer effects raise productivity. Finally, low-productivity workers are the most sensitive to the behavior of peers.
Cadmus permanent link: https://hdl.handle.net/1814/17488
Keyword(s): Labour productivity Experimental economics Peer groups Output rate Teamwork Workers Data analysis
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