Università degli studi di Modena e Reggio Emilia

Abstract
We study the impact of classroom rank in math on subsequent educational and occupational choices as well as labor market outcomes. Using the Swiss section of the PISA-2012 student achievement data linked to administrative student register data and earning records from 2012-2020, we exploit differences in math achievement distributions across classes to estimate the effect of students' ordinal rank in the classroom. We find that students with a higher classroom rank in math are more likely to select into training occupations that require a higher share of math and science skills. We then show this has lasting effects on earnings in the labor market several years after completing compulsory school and is associated with a higher willingness to invest in occupation specific further education. We use detailed subject specific survey information to show that students rank in math is associated with an increase in perceived ability in math and with increasing willingness to provide effort in math. The latter channel may offset potential consequences for occupation mismatch if occupational choices are based on perceived rather than actual ability, as we do not find that rank based decisions lead to increases in occupational changes.