Working Paper: CEPR ID: DP16066
Authors: Benjamin Elsner; Ingo E. Isphording; Ulf Zlitz
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.
Keywords: Rank; Social Comparisons; Higher Education; Peer Effects
JEL Codes: I21; J16; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| rank increases over time (J62) | importance of rank (A14) |
| rank changes (A14) | performance improvements (D29) |
| rank increases (R50) | student beliefs about capabilities (D29) |
| student achievement rank (I24) | likelihood of dropping out of a course (I21) |
| student achievement rank (I24) | chance of passing the course (C46) |
| student achievement rank (I24) | course grade (A23) |
| student achievement rank (I24) | follow-up course grade (A23) |
| student achievement rank (I24) | likelihood of taking follow-up courses (A23) |
| student achievement rank (I24) | likelihood of graduating in a related major (Y80) |