The paper presented in this ZEW Research Seminar analyses how student performance and specialization decisions are affected by a student’s ordinal achievement rank in a peer group. Exploiting a setting with randomly assigned groups, we find that students with a higher rank in their group achieve higher grades and become more likely to graduate. Moreover, if students have a high rank in a particular subject, they are more likely to choose related follow-up courses and majors. We provide evidence on altered self-perceptions about one’s ability as a likely mechanism. Our results highlight the importance of relative comparisons, with lasting effects on human capital investment and educational decisions.

Speaker

Ingo E. Isphording

Institute of Labor Economics (IZA), Bonn

Location

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Date

12.07.2018 | 14:00 - 15:30 (CET)

Event Location

ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung

L 7, 1 68161 Mannheim

Room

Heinz König Hall

Contact

Junior Research Associate