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Residential Peer Effects in Higher Education: Does the Field of Study Matter?

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Author Info
Brunello, Giorgio () (University of Padova)
De Paola, Maria () (University of Calabria)
Scoppa, Vincenzo () (University of Calabria)

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Abstract

Economists have a poor understanding of the mechanisms underlying reduced-form college peer effects. In this paper we explore a candidate mechanism, the provision of school effort. We show that, when earnings reflect individual educational performance as well as the field of study selected at college, and individual effort is a function of expected earnings, the size of the peer effect varies by field. Using data from a middle-sized public university located in Southern Italy and exploiting the random assignment of first year students to college accommodation, we find evidence that peer effects are positive and statistically significant for students enrolled in the fields of Engineering, Maths and Natural Sciences – which are expected to generate higher earnings after college – and not different from zero for students enrolled in the Humanities, Social and Life Sciences, which give access to lower payoffs. An implication of our model is that shocks affecting college wage premia may alter the size of peer effects.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3277.

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Date of creation: Jan 2008
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Handle: RePEc:iza:izadps:dp3277

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Related research
Keywords: optimal effort fields of study Italy random assignment peer effects

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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  1. Stinebrickner, Ralph & Stinebrickner, Todd R., 2006. "What can be learned about peer effects using college roommates? Evidence from new survey data and students from disadvantaged backgrounds," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1435-1454, September. [Downloadable!] (restricted)
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  2. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Bruce Sacerdote, 2001. "Peer Effects With Random Assignment: Results For Dartmouth Roommates," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 681-704, May. [Downloadable!] (restricted)
  4. Gordon C. Williams & David J. Zimmerman, 2003. "Peer Effects in Higher Education," NBER Working Papers 9501, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. David J. Zimmerman, 2003. "Peer Effects in Academic Outcomes: Evidence from a Natural Experiment," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 9-23, November. [Downloadable!] (restricted)
  6. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Blackwell Publishing, vol. 60(3), pages 531-42, July. [Downloadable!] (restricted)
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  7. Foster, Gigi, 2006. "It's not your peers, and it's not your friends: Some progress toward understanding the educational peer effect mechanism," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1455-1475, September. [Downloadable!] (restricted)
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