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Peers and Motivation at Work: Evidence from a Firm Experiment in Malawi

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  • Brune, Lasse
  • Chyn, Eric T.
  • Kerwin, Jason Theodore

Abstract

This paper studies workplace peer effects by randomly varying work assignments at a tea estate in Malawi. We find that increasing mean peer ability by 10 percent raises productivity by 0.3 percent. This effect is driven by the responses of women. Neither production nor compensation externalities cause the effect because workers receive piece rates and do not work in teams. Additional analyses provide no support for learning or socialization as mechanisms. Instead, peer effects appear to operate through “motivation”: given the choice to be reassigned, most workers prefer working near high-ability co-workers because these peers motivate them to work harder.

Suggested Citation

  • Brune, Lasse & Chyn, Eric T. & Kerwin, Jason Theodore, 2020. "Peers and Motivation at Work: Evidence from a Firm Experiment in Malawi," SocArXiv axbth_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:axbth_v1
    DOI: 10.31219/osf.io/axbth_v1
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    References listed on IDEAS

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    1. Stinebrickner, Ralph & Stinebrickner, Todd R., 2006. "What can be learned about peer effects using college roommates? Evidence from new survey data and students from disadvantaged backgrounds," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1435-1454, September.
    2. Fabian Waldinger, 2012. "Peer Effects in Science: Evidence from the Dismissal of Scientists in Nazi Germany," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(2), pages 838-861.
    3. Scott E. Carrell & Bruce I. Sacerdote & James E. West, 2013. "From Natural Variation to Optimal Policy? The Importance of Endogenous Peer Group Formation," Econometrica, Econometric Society, vol. 81(3), pages 855-882, May.
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