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Peer Effects and Social Mobility

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  • Essbaumer, Elisabeth

Abstract

This paper analyzes peer effects at the University of St. Gallen (HSG) in Switzerland. The identification strategy relies on randomized student groups to investigate how graduates’ outcomes are affected by the social composition of their peer groups. The results indicate that a 10 percentage points higher share of peers with low socio-economic status (SES) leads to a 5.08% increase in graduates’ income one year after graduation. The effect is strongest on other low-SES students and functions through an adoption of job searching behavior, occupational choices and labor supply. I do not find evidence in this sample that the outcomes of low-SES students are negatively affected by high-SES peer exposure.

Suggested Citation

  • Essbaumer, Elisabeth, 2024. "Peer Effects and Social Mobility," Economics Working Paper Series 2401, University of St. Gallen, School of Economics and Political Science.
    • Handle: RePEc:usg:econwp:2024:01
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    File URL: http://ux-tauri.unisg.ch/RePEc/usg/econwp/EWP-2401.pdf
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    More about this item

    Keywords

    peer effects; social mobility; human capital; educational mobility;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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