Competitive Peers: The Way to Higher Paying Jobs?

Claudio Schilter, Samuel Lüthi and Stefan Wolter

No 26058, RFBerlin Discussion Paper Series from ROCKWOOL Foundation Berlin (RFBerlin)

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 and controlling for other non-cognitive peer characteristics, 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-among male students-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.

Keywords: Peer effects; competitiveness; occupational choice (search for similar items in EconPapers)
JEL-codes: C93 D91 J24 (search for similar items in EconPapers)
Date: 2026-02
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