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Peer Effects and Social Networks in Education

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Author Info

  • Calvó-Armengol, Antoni

    (Universitat Autònoma de Barcelona)

  • Patacchini, Eleonora

    ()
    (Syracuse University)

  • Zenou, Yves

    ()
    (Stockholm University)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3859.

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Length: 61 pages
Date of creation: Nov 2008
Date of revision:
Publication status: published in: Review of Economic Studies, 2009, 76, 1239-1267
Handle: RePEc:iza:izadps:dp3859

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

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References

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  1. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behaviour," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3966, C.E.P.R. Discussion Papers.
  2. Manski, C.F., 1991. "Identification of Endogenous Social Effects: the Reflection Problem," Working papers, Wisconsin Madison - Social Systems 9127, Wisconsin Madison - Social Systems.
  3. 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.
  4. Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(2), pages 507-48, May.
  5. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2007. "Identification of Peer Effects through Social Networks," IZA Discussion Papers 2652, Institute for the Study of Labor (IZA).
  6. Topa, Giorgio, 2001. "Social Interactions, Local Spillovers and Unemployment," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 68(2), pages 261-95, April.
  7. 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.
  8. Bramoulle, Yann & Kranton, Rachel, 2007. "Public goods in networks," Journal of Economic Theory, Elsevier, Elsevier, vol. 135(1), pages 478-494, July.
  9. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2006. "Who's Who in Networks. Wanted: The Key Player," Econometrica, Econometric Society, Econometric Society, vol. 74(5), pages 1403-1417, 09.
  10. Durlauf, Steven N., 2004. "Neighborhood effects," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 50, pages 2173-2242 Elsevier.
  11. 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, February.
  12. Vives, Xavier, 2004. "Complementarities and Games: New Developments," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4742, C.E.P.R. Discussion Papers.
  13. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(483), pages 459-479, November.
  14. 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).
  15. Andrea Galeotti & Gerrit M�ller, 2005. "Friendship Relations in the School Class and Adult Economic Attainment," Tinbergen Institute Discussion Papers, Tinbergen Institute 05-032/3, Tinbergen Institute, revised 08 Aug 2005.
  16. Matt Jackson, 2003. "The Effects of Social Networks on Employment and Inequality," Theory workshop papers, UCLA Department of Economics 658612000000000032, UCLA Department of Economics.
  17. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, Econometric Society, vol. 65(5), pages 1005-1028, September.
  18. 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.
  19. Leo Katz, 1953. "A new status index derived from sociometric analysis," Psychometrika, Springer, Springer, vol. 18(1), pages 39-43, March.
  20. 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.
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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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