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The effect of higher-achieving peers on major choices and labor market outcomes

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  • Feld, Jan
  • Zölitz, Ulf

Abstract

This paper investigates how exposure to higher-achieving male and female peers in university affects students’ major choices and labor market outcomes. For identification of causal effects, we exploit the random assignment of students to university sections in compulsory first-year courses. We present two main results. First, studying with higher-achieving peers has no statistically significant or economically meaningful effects on educational choices. Second, we find suggestive evidence that women who have been exposed to higher- achieving male peers end up in jobs in which they are more satisfied.

Suggested Citation

  • Feld, Jan & Zölitz, Ulf, 2022. "The effect of higher-achieving peers on major choices and labor market outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 200-219.
    • Handle: RePEc:eee:jeborg:v:196:y:2022:i:c:p:200-219
    DOI: 10.1016/j.jebo.2022.01.012
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    1. Jan Feld & Nicolás Salamanca & Ulf Zölitz, 2020. "Are Professors Worth It? The Value-Added and Costs of Tutorial Instructors," Journal of Human Resources, University of Wisconsin Press, vol. 55(3), pages 836-863.
    2. Sacerdote, Bruce, 2011. "Peer Effects in Education: How Might They Work, How Big Are They and How Much Do We Know Thus Far?," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 3, chapter 4, pages 249-277, Elsevier.
    3. Hill, Andrew J., 2017. "The positive influence of female college students on their male peers," Labour Economics, Elsevier, vol. 44(C), pages 151-160.
    4. Kaiser, Caspar & Vendrik, Maarten C.M., 2020. "How threatening are transformations of happiness scales to subjective wellbeing research?," Research Memorandum 032, Maastricht University, Graduate School of Business and Economics (GSBE).
    5. Benjamin Elsner & Ingo E Isphording & Ulf Zölitz, 2021. "Achievement Rank Affects Performance and Major Choices in College [Gender, competitiveness, and socialization at a young age: evidence from a matrilineal and a patriarchal society]," The Economic Journal, Royal Economic Society, vol. 131(640), pages 3182-3206.
    6. Bart H. H. Golsteyn & Arjan Non & Ulf Zölitz, 2021. "The Impact of Peer Personality on Academic Achievement," Journal of Political Economy, University of Chicago Press, vol. 129(4), pages 1052-1099.
    7. Jan Feld & Ulf Zölitz, 2017. "Understanding Peer Effects: On the Nature, Estimation, and Channels of Peer Effects," Journal of Labor Economics, University of Chicago Press, vol. 35(2), pages 387-428.
    8. Angela Cools & Raquel Fernandez & Eleonora Patacchini, 2019. "Girls, Boys, and High Achievers," Working Papers 2019-032, Human Capital and Economic Opportunity Working Group.
    9. Jonathan Guryan & Kory Kroft & Matthew J. Notowidigdo, 2009. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 34-68, October.
    10. Scott E. Carrell & Mark Hoekstra & Elira Kuka, 2018. "The Long-Run Effects of Disruptive Peers," American Economic Review, American Economic Association, vol. 108(11), pages 3377-3415, November.
    11. Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
    12. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    13. Pierre Mouganie & Yaojing Wang, 2020. "High-Performing Peers and Female STEM Choices in School," Journal of Labor Economics, University of Chicago Press, vol. 38(3), pages 805-841.
    14. Timothy N. Bond & Kevin Lang, 2019. "The Sad Truth about Happiness Scales," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1629-1640.
    15. Murdoch, Duncan J. & Tsai, Yu-Ling & Adcock, James, 2008. "P-Values are Random Variables," The American Statistician, American Statistical Association, vol. 62, pages 242-245, August.
    16. Fischer, Stefanie, 2017. "The downside of good peers: How classroom composition differentially affects men's and women's STEM persistence," Labour Economics, Elsevier, vol. 46(C), pages 211-226.
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    Cited by:

    1. Cools, Angela & Fernández, Raquel & Patacchini, Eleonora, 2022. "The asymmetric gender effects of high flyers," Labour Economics, Elsevier, vol. 79(C).
    2. Brice Romuald Gueyap Kounga, 2023. "Identification and Estimation of a Semiparametric Logit Model using Network Data," Papers 2310.07151, arXiv.org, revised Jun 2024.
    3. Luo, Yiyang & Yang, Songtao, 2023. "Gender peer effects on students’ educational and occupational expectations," China Economic Review, Elsevier, vol. 77(C).
    4. Martina Zanella, 2024. "Stereotypical Selection," Trinity Economics Papers tep0224, Trinity College Dublin, Department of Economics, revised Aug 2024.
    5. Mumford, Kevin J. & Patterson, Richard & Yim, Anthony, 2024. "College Course Shutouts," IZA Discussion Papers 16859, Institute of Labor Economics (IZA).
    6. Leighton, Margaret & Speer, Jamin D., 2023. "Rich Grad, Poor Grad: Family Background and College Major Choice," IZA Discussion Papers 16099, Institute of Labor Economics (IZA).
    7. Mallika Thomas, 2024. "Effects of Peer Groups on the Gender-Wage Gap and Life After the MBA: Evidence from the Random Assignment of MBA Peers," Upjohn Working Papers 24-402, W.E. Upjohn Institute for Employment Research.
    8. Modena, Francesca & Rettore, Enrico & Tanzi, Giulia Martina, 2022. "Asymmetries in the gender effect of high-performing peers: Evidence from tertiary education," Labour Economics, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    Gender; Major choice; Peer effects;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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