Document Type
Article
Publication Date
2-9-2025
Department 1
Economics
Abstract
Arai and Nakazawa estimate long-term peer effects in the workplace by investigating whether working with a future executive makes junior employees more likely to be promoted. Using data on career history at the Japanese central administration from 1946 to 2019, we find that long-term peer effects are substantial and persistent—junior employees who work with a future executive during the first 5 years of their employment are more likely to be promoted to top executive than employees who do not. The empirical results are consistent with the mechanisms of increased human capital, the formation of social connections, and a reduction in information asymmetry.
Copyright Note
This is the author's version of the work. This publication appears in Gettysburg College's institutional repository by permission of the copyright owner for personal use, not for redistribution.
DOI
10.1111/ecin.13278
Version
Accepted Manuscript/Postprint
Recommended Citation
Arai, Natsuki and Nobuhiko Nakazawa. "Long-Run Peer Effects and Promotion: Evidence From 70-Plus years of Career Records in Japan." Economic Inquiry (2025): 1–19. https://doi.org/10.1111/ecin.13278.
Required Publisher's Statement
This is a pre-copyedited, author-produced version of an article accepted for publication in Wiley's Economic Inquiry journal following peer review. The version of record is available online at: https://onlinelibrary.wiley.com/doi/10.1111/ecin.13278.