Cornelissen, Thomas; Dustmann, Christian; Schönberg, Uta - CESifo - 2013
workers, firms, and occupations with a focus on peer effects in wages rather than productivity. Our estimation strategy …—which links the average permanent productivity of workers’ peers to their wages— circumvents the reflection problem and accounts … for the endogenous sorting of workers into peer groups and firms. On average, we find only small peer effects in wages. We …