Cornelissen, Thomas; Dustmann, Christian; Schönberg, Uta - Institute for the Study of Labor (IZA) - 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 …