Abstract
We investigate potential spillover effects from the German Excellence Initiative on university education. Using data from a representative student survey, we find that winning the competition allows universities to enroll significantly better high-school graduates in three subsequent admission terms. We then investigate a possible channel explaining the effect on admissions by studying whether the excellence label improves students' perception of educational quality. We find that the label significantly improves students' ratings of a university's educational quality and their job market expectations immediately following the award. However, ratings largely return to previous levels when students are surveyed three years later, although the status persists.
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More From: Journal of Institutional and Theoretical Economics-zeitschrift Fur Die Gesamte Staatswissenschaft
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