Tag Archives: peer effects

The impact of self-selection on performance

Our behavior is strongly influenced by comparisons with others. These “others” are not usually assigned to us, but we choose who we interact and compare ourselves with. Or, as economists put it, individuals self-select into certain environments and into specific … Continue reading

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How social norms affect smoking behavior

Today on World No Tobacco Day, the WHO highlights the various negative effects of smoking, calling attention to the fact that tobacco use worldwide causes more than 7 million deaths every year. Since the effects on health, income and productivity … Continue reading

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Three mechanisms to boost firm productivity

Monetary incentives are not always the most cost-effective way to make employees more productive. Three recent IZA World of Labor articles look at alternative mechanisms to improve worker productivity and boost firm performance: peer effects, employee well-being, and employee ownership. … Continue reading

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Peer effects! Peer effects everywhere! Whether you are shopping, working, leaving the nest…

Does the social environment influence what individuals buy? Are mothers more likely to work when other women in the neighborhood have a job? Do young people choose to continue living with their parents because their friends also do? If so, … Continue reading

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How female labor supply is influenced by working neighbors and retired grandmothers

Over the last century, female labor participation has increased in almost all developed countries. The availability of child care and increased contraceptive access along with other institutional, cultural and policy changes have made it easier for women to reconcile family … Continue reading

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Rank, sex, drugs and crime: How relative ability affects adolescents’ risky behaviors

Parents, teachers and policymakers alike are concerned with adolescents engaging in risky practices, such as drug abuse, unprotected sex, or all kinds of delinquent behaviors (stealing, fighting, etc.). Adolescents are often motivated by short-term benefits while potentially not foreseeing associated … Continue reading

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Peer effects at work are smaller than often suggested

What happens to a worker’s own productivity if one of her less productive colleagues is replaced by a highly productive new co-worker? Would this have any impact on that worker’s own productivity? And if so, then what is the possible … Continue reading

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