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

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.