Clean Evidence on Peer Effects

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...

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Bibliographic Details
Published inJournal of labor economics Vol. 24; no. 1; pp. 39 - 57
Main Authors Falk, Armin, Ichino, Andrea
Format Journal Article
LanguageEnglish
Published Chicago The University of Chicago Press 01.01.2006
University of Chicago, acting through its Press
Subjects
Behavior
Confounding (Statistics)
Data analysis
Desks
Effects
Empirical evidence
Employee attitude
Experimental economics
Experiments
Field experiments
High schools
Impact analysis
Incentive pay
Labour productivity
Output rate
Peer groups
Peer pressure
Peer relationships
Peers
Productivity
Questionnaires
Recruitment
Setting
Standard deviation
Students
Studies
Teamwork
Work environment
Work environments
Workers
Switzerland
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ISSN0734-306X
1537-5307
DOI10.1086/497818

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Summary: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.
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ISSN:0734-306X
1537-5307
DOI:10.1086/497818