Educational Achievements as a Determinant of an Individual’s Formal Power
The scope of this study is to define how educational achievements of individuals in Slovenia define their “formal power” in the organizations where they work. The study is based on theoretical definitions of the concepts of formal power and education. A total of 509 people from Slovenia over 30 years of age participated in the study. We recognized a certain influence of educational achievement on the formal position in the organizational hierarchy. The main predictor of an individual’s formal power in an organization is the individual’s last achieved level of formal education. The average grade for the final achieved level of formal education and the initiative regarding the search for additional education has much less of an impact on power than the highest level of education obtained. One of the most important practical implications is that education is one of the basic predispositions to having formal power but not necessarily always and not in every case.
This paper considers a fundamental question about the school environment - what are the long run effects of a student\'s ordinal rank in elementary school? Using administrative data from all public school students in Texas, we show that students with a higher third grade academic rank, conditional on ability and classroom effects, have higher subsequent test scores, are more likely to take AP classes, graduate high school, enroll in college, and ultimately have higher earnings 19 years later. Given these findings, the paper concludes by exploring the tradeoff between higher quality schools and higher rank.