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A Question of Honor? The Labor Market Advantage of Academic Signaling

Author

Listed:
  • Astruc--Le Souder, Mael

    (Bordeaux University)

  • Bargain, Olivier

    (University of Bordeaux)

  • Locks, Gedeao

    (DIW, Berlin)

Abstract

As tertiary education expands, employers increasingly rely on academic distinctions to screen among similarly qualified graduates. We study the labor-market effects of honors using administrative and survey data on Sorbonne master's graduates. We exploit France's fixed GPA thresholds for honors assignment to implement a fuzzy regression discontinuity design. Returns are concentrated at the intermediate distinction ("High Honors"), indicating that credentials are most informative when they separate above- from below-average students. We find that High Honors accelerate school-to-work transitions, increasing the monthly job-finding rate by about 40%. Honors also generate an initial wage premium, which fades within two years, and lead to persistent improvements in job quality, including greater access to master's-level positions and faster transitions to permanent contracts. These results highlight the role of academic distinctions as short-run signals that shape early career allocation rather than long-term earnings.

Suggested Citation

  • Astruc--Le Souder, Mael & Bargain, Olivier & Locks, Gedeao, 2026. "A Question of Honor? The Labor Market Advantage of Academic Signaling," IZA Discussion Papers 18567, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18567
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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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