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Peer Group Effects And Optimal Education System

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Author Info
Marisa Hidalgo () (Universidad de Alicante)

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Abstract

The 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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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-12.

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Length: 38 pages
Date of creation: Mar 2005
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2005-12

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Related research
Keywords: 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

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Marisa Hidalgo-Hidalgo, 2007. "On the optimal allocation of students when peer effect works: Tracking vs Mixing," Working Papers 07.14, Universidad Pablo de Olavide, Department of Economics. [Downloadable!]
    Other versions:
  2. Marisa Hidalgo Hidalgo, 2009. "Tracking can be more equitable than mixing: peer effects and college attendance," Working Papers 09.04, Universidad Pablo de Olavide, Department of Economics. [Downloadable!]
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