Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. We estimate the eects of student employment on academic performance.Performance is measured by grades achieved one and a half years after entering university. We use the amount of nancial aid students receive after application as a source of exogenous variation in the probability or being employed to correct for potential endogeneity bias. We nd no evidence that student employment is detrimental to academic performance, even for a larger number of hours worked per week. There is signicant selection of students into dierent types of student employment.JEL Classication: J31, J61