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Competitive Peers: The Way to Higher Paying Jobs?

Author

Listed:
  • Schilter, Claudio

    (University of Bern)

  • Lüthi, Samuel

    (Swiss Co-ordination Center for Research in Education)

  • Wolter, Stefan C.

    (University of Bern)

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

  • Schilter, Claudio & Lüthi, Samuel & Wolter, Stefan C., 2024. "Competitive Peers: The Way to Higher Paying Jobs?," IZA Discussion Papers 17289, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17289
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    References listed on IDEAS

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    1. Paolo Crosetto & Antonio Filippin, 2013. "The “bomb” risk elicitation task," Journal of Risk and Uncertainty, Springer, vol. 47(1), pages 31-65, August.
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    5. Markowsky, Eva & Beblo, Miriam, 2022. "When do we observe a gender gap in competition entry? A meta-analysis of the experimental literature," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 139-163.
    6. Thomas Buser & Noemi Peter & Stefan C. Wolter, 2022. "Willingness to compete, gender and career choices along the whole ability distribution," Experimental Economics, Springer;Economic Science Association, vol. 25(5), pages 1299-1326, November.
    7. Thomas Buser & Noemi Peter & Stefan C. Wolter, 2017. "Gender, Competitiveness, and Study Choices in High School: Evidence from Switzerland," American Economic Review, American Economic Association, vol. 107(5), pages 125-130, May.
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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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