TY  - RPRT
        AU  - Feng, Andy
AU  - Graetz, Georg
        TI  - A Question of Degree: The Effects of Degree Class on Labor Market Outcomes
        PY  - 2015/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8826
        UR  - https://www.iza.org/index.php/publications/dp8826
        AB  - How does measured performance at university affect labor market outcomes? We show that degree class – a coarse measure of student performance used in the UK – causally affects graduates' industry and hence expected wages. To control for unobserved ability, we employ a regression discontinuity design that utilizes rules governing the award of degrees. A First Class (Upper Second) increases the probability of working in a high-wage industry by thirteen (eight) percentage points, and leads to three (seven) percent higher expected wages. The results point to the importance of statistical discrimination, heuristic decision making, and luck in the labor market.
        KW  - statistical discrimination
KW  - regression discontinuity design
KW  - high skill wage inequality
        ER  -