Network Effects on Worker Productivity

52 Pages Posted: 12 Nov 2015

See all articles by Matthew J. Lindquist

Matthew J. Lindquist

Stockholm University - Swedish Institute for Social Research (SOFI)

Jan Sauermann

IFAU - Institute for Labour Market Policy Evaluation; SOFI, Stockholm University; IZA; Maastricht University - Research Centre for Education and the Labour Market (ROA)

Yves Zenou

Stockholm University; Monash University - Department of Economics; Research Institute of Industrial Economics (IUI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: November 2015

Abstract

We use data from an in-house call center of a multi-national mobile network operator to study how co-worker productivity affects worker productivity via network effects. We also exploit data from a field experiment to analyze how exogenous changes in worker productivity due to on-the-job training affect co-worker productivity, including non-trained workers. We show that there are strong network effects in co-worker productivity. This effect is driven by conformist behavior. We also show that exposure to trained workers increases the productivity of non-trained workers. This effect works through strategic complementarities (knowledge spillovers). We demonstrate how our network model of worker productivity can be used to inform a variety of practical decisions faced by personnel managers including the design of optimal training policy.

Keywords: on-the-job training, peer effects, social networks, worker productivity

JEL Classification: J24, M53, Z13

Suggested Citation

Lindquist, Matthew J. and Sauermann, Jan and Zenou, Yves and Zenou, Yves, Network Effects on Worker Productivity (November 2015). CEPR Discussion Paper No. DP10928, Available at SSRN: https://ssrn.com/abstract=2689150

Matthew J. Lindquist (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Jan Sauermann

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden

SOFI, Stockholm University ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht MD6200
Netherlands

Yves Zenou

Monash University - Department of Economics ( email )

Australia

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Research Institute of Industrial Economics (IUI) ( email )

P.O. Box 5501
S-114 85 Stockholm
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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