It certainly helps the peeps get promotion faster. It's particularly noticeable at the beginning of a career, which I why I'll usually only upgrade a room when a new generation takes over. I'll wait to upgrade until I'm sure that the family can afford it, and only upgrade a room that will be used. Because of that I've had, say, a L1 workshop and a L3 office in the past.
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To err is human; to arr is pirate.