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Achievement Rank Affects Performance and Major Choices in College

Author

Listed:
  • Zölitz, Ulf
  • Elsner, Benjamin
  • Isphording, Ingo E.

Abstract

This paper studies how a student’s ordinal rank in a peer group affects performance and specialisation choices in university. By exploiting data with repeated random assignment of students to teaching sections, we find that a higher rank increases performance and the probability of choosing related follow-up courses and majors. We document two types of dynamic effects. First, earlier ranks are less important than later ranks. Second, responses to rank changes are asymmetric: improvements in rank raise performance, while decreases in rank have no effect. Rank effects partially operate through students’ expectations about future grades.

Suggested Citation

  • Zölitz, Ulf & Elsner, Benjamin & Isphording, Ingo E., 2021. "Achievement Rank Affects Performance and Major Choices in College," CEPR Discussion Papers 16066, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16066
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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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