Publication: Coworker Complementarity
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2017-01
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Center for International Development at Harvard University
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Neffke, Frank. “Coworker Complementarity.” CID Research Fellow and Graduate Student Working Paper Series 2017.79, Harvard University, Cambridge, MA, January 2017.
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Abstract
How important is working with people who complement one's skills? Using administrative data that record which of 491 educational tracks each worker in Sweden absolved, I quantify the educational tracks among coworkers along two dimensions: coworker match and coworker substitutability. Complementary coworkers raise wages with a comparable factor as does a college degree, whereas working with close substitutes is associated with wage penalties. Moreover, this coworker fit does not only account for large portions of the urban and large-plant wage premiums, but the returns to own schooling and the urban wage premium are almost completely contingent on finding complementary coworkers.
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