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Why Stars Matter / Ajay K. Agrawal, John McHale, Alex Oettl.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Agrawal, Ajay K.
Contributor:
National Bureau of Economic Research.
McHale, John.
Oettl, Alex.
Series:
Working Paper Series (National Bureau of Economic Research) no. w20012.
NBER working paper series no. w20012
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2014.
Summary:
The growing peer effects literature pays particular attention to the role of stars. We decompose the causal effect of hiring a star in terms of the productivity impact on: 1) co-located incumbents and 2) new recruits. Using longitudinal university department-level data we report that hiring a star does not increase overall incumbent productivity, although this aggregate effect hides offsetting effects on related (positive) versus unrelated (negative) colleagues. However, the primary impact comes from an increase in the average quality of subsequent recruits. This is most pronounced at mid-ranked institutions, suggesting implications for the socially optimal spatial organization of talent.
Notes:
Print version record
March 2014.

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