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Peer effects in the decision to apply for a professional excellence award

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  • Berlinski, Samuel
  • Ramos, Alejandra

Abstract

We study the role social interactions at the workplace play in the decision to apply for a professional recognition program. In Chile, teachers can apply to a pedagogical excellence award. Successful applicants receive a wage increase and are publicly recognized. We exploit the quasi-random variation in the allocation of awards generated by a sharp assignment rule. We document that the success of an applicant increases her school colleagues’ application rate to the program by almost 75%. The impact is higher for colleagues with closer interaction with a successful applicant. We speculate on social learning as a driver of this result.

Suggested Citation

  • Berlinski, Samuel & Ramos, Alejandra, 2020. "Peer effects in the decision to apply for a professional excellence award," Labour Economics, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:labeco:v:67:y:2020:i:c:s092753712030138x
    DOI: 10.1016/j.labeco.2020.101934
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    More about this item

    Keywords

    Merit award; Public recognition; Peer effects; Social learning;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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