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Endogenous peer effects in diverse friendship networks: Evidence from Swedish classrooms

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  • Diemer, Andreas

Abstract

Do students benefit differently from interacting with similar and diverse peers? Using register-linked survey data from a stratified sample of Swedish classrooms I test whether endogenous peer effects in student achievement are heterogeneous by immigrant status. My empirical strategy combines instrumental variables, classroom fixed effects, and a control function to identify the parameter of interest separately from contextual and correlated effects. In particular, by considering partially overlapping networks of peers and family members, I use peers’ parents’ education as instruments for peer behaviour. My findings suggest that endogenous effects are limited to interactions with native peers only, but benefit both native and migrant students. High-ability children of migrants appear to be particularly vulnerable to friendship segregation.

Suggested Citation

  • Diemer, Andreas, 2022. "Endogenous peer effects in diverse friendship networks: Evidence from Swedish classrooms," Economics of Education Review, Elsevier, vol. 89(C).
  • Handle: RePEc:eee:ecoedu:v:89:y:2022:i:c:s0272775722000450
    DOI: 10.1016/j.econedurev.2022.102269
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    More about this item

    Keywords

    Heterogeneous peer effects; Diverse friendships; Immigrant children; Integration;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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