Episode 6: Fabian Lange on Supervisors and Performance Reviews

Fabian Lange shows that there is wide heterogeneity in how supervisors rate their workers during their performance reviews. There are two explanations for this heterogeneity: (a) different supervisors rate the same performance differently, and (b) some supervisors rate more highly because they manage their workers better and as a result, their workers are more productive. Fabian shows that ratings heterogeneity derives in part from real differences in managerial ability.