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Peer Effects and Social Networks in Education

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  • Antoni Calvo-Armengol
  • Eleonora Patacchini

    ()

  • Yves Zenou

    ()
    (Universitat Autonoma de Barcelona,Universita di Roma "La Sapienza", Stockholm University, IFN, GAINS, and CREAM)

Abstract

This paper studies whether structural properties of friendship networks affect individual outcomes in education. We first develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to her Katz-Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual but puts less weight to her distant friends. We then bring the model to the data by using a very detailed dataset of adolescent friendship networks. We show that, after controlling for observable individual characteristics and unobservable network specific factors, the individual's position in a network (as measured by her Katz-Bonacich centrality) is a key determinant of her level of activity. A standard deviation increase in the Katz-Bonacich centrality increases the pupil school performance by more than 7 percent of one standard deviation.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 0814.

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Date of creation: Nov 2008
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Handle: RePEc:crm:wpaper:0814

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Keywords: Centrality measure; peer influence; network structure; school performance;

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  1. Antoni Calvó-Armengol & Yves Zenou, 2004. "Social Networks And Crime Decisions: The Role Of Social Structure In Facilitating Delinquent Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 939-958, 08.
  2. Kolstad, Charles D & Mathiesen, Lars, 1987. "Necessary and Sufficient Conditions for Uniqueness of a Cournot Equilibrium," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 54(4), pages 681-90, October.
  3. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  4. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2004. "Who's Who in Networks. Wanted: The Key Player," Working Papers 178, Barcelona Graduate School of Economics.
  5. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, American Economic Association, vol. 94(3), pages 426-454, June.
  6. Edward E. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1738, Harvard - Institute of Economic Research.
  7. Durlauf,S.N., 2001. "On the empirics of social capital," Working papers, Wisconsin Madison - Social Systems 3, Wisconsin Madison - Social Systems.
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  9. Galeotti, Andrea & Mueller, Gerrit, 2005. "Friendship Relations in the School Class and Adult Economic Attainment," IZA Discussion Papers 1682, Institute for the Study of Labor (IZA).
  10. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(2), pages 533-575, May.
  11. Leo Katz, 1953. "A new status index derived from sociometric analysis," Psychometrika, Springer, Springer, vol. 18(1), pages 39-43, March.
  12. De Giorgi, Giacomo & Pellizzari, Michele & Redaelli, Silvia, 2007. "Be as Careful of the Books You Read as of the Company You Keep: Evidence on Peer Effects in Educational Choices," IZA Discussion Papers 2833, Institute for the Study of Labor (IZA).
  13. Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2007. "Identification of Peer Effects through Social Networks," Cahiers de recherche, CIRPEE 0705, CIRPEE.
  14. Zimmerman, David J., 1999. "Peer Effects in Academic Outcomes: Evidence From a Natural Experiment," Williams Project on the Economics of Higher Education, Department of Economics, Williams College DP-52, Department of Economics, Williams College.
  15. Durlauf,S.N., 2003. "Neighborhood effects," Working papers, Wisconsin Madison - Social Systems 17, Wisconsin Madison - Social Systems.
  16. Vives, Xavier, 2004. "Complementarities and Games: New Developments," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4742, C.E.P.R. Discussion Papers.
  17. Topa, Giorgio, 1997. "Social Interactions, Local Spillovers and Unemployment," Working Papers, C.V. Starr Center for Applied Economics, New York University 97-17, C.V. Starr Center for Applied Economics, New York University.
  18. Evans, William N & Oates, Wallace E & Schwab, Robert M, 1992. "Measuring Peer Group Effects: A Study of Teenage Behavior," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(5), pages 966-91, October.
  19. Bramoulle, Yann & Kranton, Rachel, 2007. "Public goods in networks," Journal of Economic Theory, Elsevier, Elsevier, vol. 135(1), pages 478-494, July.
  20. Matthew O. Jackson & Brian W. Rogers, 2007. "Meeting Strangers and Friends of Friends: How Random Are Social Networks?," American Economic Review, American Economic Association, American Economic Association, vol. 97(3), pages 890-915, June.
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  1. Crime, unemployment & peer effects
    by chris dillow in Stumbling and Mumbling on 2011-10-20 14:18:18
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