Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This study examines the influence of students’ ordinal positions in the distribution of grades in their ninth-grade school cohort on subsequent educational and labor market outcomes using population-wide data for Sweden. The identification strategy uses differences between students’ ranks in their school and their ranks in the country-wide ability distribution after conditioning on school-cohort fixed effects and school-level grade distributions. The findings reveal an advantage of occupying a higher rank in school with respect to educational and labor market accomplishments in adulthood, whereas a lower rank yields adverse consequences. Contrary to findings from the United States, no effect is found for students situated in the middle of the rank distribution. This study also shows that ordinal rank effects are more pronounced for students with lower socio-economic status and for female students at the top of their school ability distribution. This study highlights the importance of students’ rank positions in determining their future academic and professional outcomes.

Keywords: education; income; ordinal rank; peer effects

JEL-codes: I20; I23; I28

Language: English

54 pages, November 14, 2025

Full text files

wp-2025-21-the-effec...income-in-sweden.pdf  Full text

Download statistics

• IFAU - Institute for Evaluation of Labour Market and Education Policy
• Ordering Working Papers
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Ali Ghooloo ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:ifauwp:2025_021This page generated on 2025-11-16 11:05:26.