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IZA Discussion Paper No. 16607
November 2023
Reaching for Gold! The Impact of a Positive Reputation Shock on Career Choice

published in: European Economic Review, 2025, 175, 105017

We analyze the causal influence a positive reputation shock for a particular occupation may have on career choice. The measure of the positive reputation shock is the unpredictable event that a young adult from one's own country wins a (gold) medal in a particular occupation at the World Skills - the world championship of vocational skills. In an occupation with a gold medal won, searches for apprenticeship vacancies increase significantly by around 7 percent compared to occupations that do not win a competition. In occupations where only a silver or bronze medal is awarded, the effect is also positive and statistically significant, but less pronounced. More importantly, the increase in searches for apprenticeship vacancies in the current year has also led to around 2.5 percent more contracts being signed in the winning occupation, and there are indications that these apprenticeships have a better match between employers and employees (trainees).

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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