How coworkers shape careers: Learning and competition pull in opposite directions
New research, published by the Rockwool Foundation Berlin (RFBerlin), shows that coworkers can have powerful—but opposing—effects on the careers of young workers. While some colleagues foster learning and long-term success, others may hinder career progression through direct competition. The study follows young labor market entrants in Germany without formal qualifications and examines how the quality of coworkers in their first job shapes long-term outcomes. At first glance, coworker quality appears to have little overall effect. However, this masks two offsetting forces.
When distinguishing between types of coworkers, a clear pattern emerges. Exposure to high-performing trained colleagues—those who have completed apprenticeship training—raises earnings by about 3.7% five years after labor market entry. In contrast, exposure to equally high-performing untrained peers reduces earnings by around 5%, reflecting competition for promotions, wages, and job stability. These effects persist over at least ten years.
“The overall effect looks small at first, but that’s because learning and competition pull in opposite directions,” said Christian Dustmann, Director of RFBerlin and Professor of Economics at University College London. “Once we separate these forces, the impact of coworkers becomes very clear.”
The difference reflects career paths within firms. Trained workers are less likely to compete directly and instead act as sources of knowledge and guidance, while untrained workers often compete for the same opportunities. Learning effects are strongest in more complex jobs, whereas competition is most pronounced among workers at similar career stages and in firms with strong promotion incentives.
“The key insight is that not all coworkers matter in the same way,” added Thomas Cornelissen, Project Leader at RFBerlin and Professor of Economics at the University of Essex. “Some help you build skills, while others compete with you for the same career opportunities.”
The findings also reveal gender differences: men are more affected by both positive and negative peer effects. Moreover, while women benefit mainly when remaining with their initial employer, men additionally benefit through subsequent job mobility to higher-paying employers.
Overall, the study shows that workplace learning can be an important driver of career development, but its effects are often obscured by competition. It also suggests that vocational training generates broader benefits, as skilled workers contribute to the development of others.
Wissenschaftlicher Ansprechpartner:
Prof. Thomas Cornelissen 0044/ 75 88 02 52 76; t.cornelissen@essex.ac.uk
Prof. Christian Dustmann 0044/ 78 18 04 83 80; cd@rfberlin.com
Originalpublikation:
https://www.rfberlin.com/research-insight/ RFBerlin Research Insight: “Knowledge Spillovers, Competition, and Individual Careers”, von Thomas Cornelissen, Christian Dustmann und Uta Schönberg
Weitere Informationen:
https://www.rfberlin.com/network-paper/knowledge-spillovers-competition-and-individual-careers/ RFBerlin Research Insight: “Knowledge Spillovers, Competition, and Individual Careers” von Thomas Cornelissen, Christian Dustmann und Uta Schönberg
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