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Competitive Peers: The Way to Higher Paying Jobs?

Author

Listed:
  • Claudio Schilter
  • Samuel Luethi
  • Stefan C. Wolter

Abstract

We merge experimental data on competitiveness of a large sample of students with their complete educational history for up to ten years after the initial assessment. Exploiting quasi-random class assignments, we find that having competitive peers as classmates makes students choose and secure positions in higher-paying occupations. These occupations are also more challenging and more popular. On the cost side, competitive peers do not lead to a lower probability of graduating from the subsequent job-specific education, but they significantly increase the probability of requiring extra time to do so.

Suggested Citation

  • Claudio Schilter & Samuel Luethi & Stefan C. Wolter, 2024. "Competitive Peers: The Way to Higher Paying Jobs?," Economics of Education Working Paper Series 0228, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0228
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    More about this item

    Keywords

    Peer effects; competitiveness; occupational choice;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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