Peer Group Effects And Optimal Education System
AbstractThe belief that peers' characteristics influence the behavior and outcomes of students in school has been important in shaping public policy. How peers affect individuals depends on the educational system prevailing. I analyze two different systems: tracking and mixing, and I propose several criteria to compare them. I find that at compulsory level, average human capital across the population is maximized under tracking, although tracking does not dominates mixing according to first order stochastic dominance. The education system that maximizes college attendance depends on the income level in the population and on the opportunity cost of college attendance.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-12.
Length: 38 pages
Date of creation: Mar 2005
Date of revision:
Publication status: Published by Ivie
Peer Effects; Tracking; Mixing; Income Premium;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-EDU-2006-02-05 (Education)
- NEP-HRM-2006-02-05 (Human Capital & Human Resource Management)
- NEP-SOC-2006-02-05 (Social Norms & Social Capital)
- NEP-URE-2006-02-05 (Urban & Real Estate Economics)
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