Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/252255 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15131
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
peer effects
endogenous peer effects
exogenous peer effects
social networks
worker productivity
JEL: 
J24
M50
Document Type: 
Working Paper

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