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On the Mechanisms of Ability Peer Effects

Author

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  • Alexandra de Gendre

    (School of Economics, The University of Sydney Institute of Labor Economics (IZA))

  • Nicolás Salamanca

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne; Institute of Labor Economics (IZA))

Abstract

Studying with higher ability peers increases student performance, yet we have little idea why. We exploit random assignment of students to classrooms and find positive peer effects on test scores. With very rich data on seventeen potential mechanisms, we then estimate how peer effects on attitudes, parents, etc. could drive these results. Higher-achieving peers reduce student effort, increase student university aspirations, increase parental time investments, and have precise null effects elsewhere. None of these mechanisms, however, explain our peer effect on test scores. Our findings question the prevailing empirical approach to understanding the mechanisms underlying academic peer effects.

Suggested Citation

  • Alexandra de Gendre & Nicolás Salamanca, 2020. "On the Mechanisms of Ability Peer Effects," Melbourne Institute Working Paper Series wp2020n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2020n19
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    1. Zhou, Weina & Wang, Shun, 2023. "Early childhood health shocks, classroom environment, and social-emotional outcomes," Journal of Health Economics, Elsevier, vol. 87(C).

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    More about this item

    Keywords

    Random assignment; standardized test; mediation analysis; parental investment; school inputs;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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