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Peers at work: Evidence from the lab
Roel van Veldhuizen1, Hessel Oosterbeek2, Joep Sonnemans2,3
1WZB Berlin, Berlin, Germany.
Observability in team tasks doesn't always boost low-productivity workers. Peer effects are mixed, with some improving performance and others free-riding, challenging prior field research findings.
Area of Science:
- Behavioral Economics
- Organizational Psychology
- Labor Economics
Background:
- Peer effects significantly influence workplace productivity.
- Observability is hypothesized to enhance positive peer effects.
- Previous field studies suggest observability benefits low-performers.
Purpose of the Study:
- To experimentally investigate the impact of observability on peer effects in a team production setting.
- To determine if low-productivity workers improve when observed by high-productivity peers.
- To analyze the heterogeneity of peer effects under varying observability conditions.
Main Methods:
- A controlled laboratory experiment involving a team real-effort production task.
- Manipulation of observability: participants could (or could not) observe a co-worker, and be observed by them.
- Measurement of individual worker productivity and team output.
Main Results:
- No evidence found that low-productivity workers improved when observed by high-productivity co-workers.
- Significant heterogeneity in peer effects was observed.
- Some workers reciprocated high-productivity peers, while others engaged in free-riding behavior.
Conclusions:
- Observability's role in mitigating negative peer effects or enhancing positive ones in production tasks is complex.
- Lab findings contrast with some previous field research on peer effects and observability.
- Worker responses to peer observability are heterogeneous, indicating both cooperative and opportunistic behaviors.
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