Class Rank and Long-Run Outcomes / Jeffrey T. Denning, Richard Murphy, Felix Weinhardt.

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Denning, Jeffrey T

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w27468.Publication details: Cambridge, Mass. National Bureau of Economic Research 2020.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: This paper considers an unavoidable feature of the school environment, class rank. What are the long-run effects of a student's ordinal rank in elementary school? Using administrative data on all public-school students in Texas, we show that students with a higher third-grade academic rank, conditional on achievement and classroom fixed effects, have higher subsequent test scores, are more likely to take AP classes, graduate from high school, enroll in and graduate from college, and ultimately have higher earnings 19 years later. We also discuss the necessary assumptions for the identification of rank effects and propose new solutions to identification challenges. The paper concludes by exploring the tradeoff between higher quality schools and higher rank in the presence of these rank-based peer effects.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w27468 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w27465 Understanding 100 Years of the Evolution of Top Wealth Shares in the U.S.: What is the Role of Family Firms? /	nber w27466 Technology Diffusion /	nber w27467 Fixing Misallocation with Guidelines: Awareness vs. Adherence /	nber w27468 Class Rank and Long-Run Outcomes /	nber w27469 Home Prices, Fertility, and Early-Life Health Outcomes /	nber w2747 Marriage Bars: Discrimination Against Married Women Workers, 1920's to 1950's /	nber w27470 The Tax Cuts and Jobs Act: Which Firms Won? Which Lost? /	Next

July 2020.

This paper considers an unavoidable feature of the school environment, class rank. What are the long-run effects of a student's ordinal rank in elementary school? Using administrative data on all public-school students in Texas, we show that students with a higher third-grade academic rank, conditional on achievement and classroom fixed effects, have higher subsequent test scores, are more likely to take AP classes, graduate from high school, enroll in and graduate from college, and ultimately have higher earnings 19 years later. We also discuss the necessary assumptions for the identification of rank effects and propose new solutions to identification challenges. The paper concludes by exploring the tradeoff between higher quality schools and higher rank in the presence of these rank-based peer effects.