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Elite parents in the classroom and human capital development: evidence from randomized class assignments in China

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  • Zhang, Xuekai
  • Chu, Chaoxu

Abstract

This paper investigates the peer effects of elite parental occupations on student human capital development using data from randomly assigned classrooms of junior high schools in China. We find that exposure to peers with parents who are professionals improves students’ academic performance, cognitive and noncognitive skills, whereas exposure to peers with parents who are government officials adversely affects students’ cognitive and noncognitive skills. These effects operate primarily through classroom atmosphere, friendship quality, learning efforts, parent-child relationships, and teacher engagement. Our findings deepen the understanding of how socioeconomic status shapes peer outcomes and uncover a source of educational inequality driven by occupational sorting.

Suggested Citation

  • Zhang, Xuekai & Chu, Chaoxu, 2026. "Elite parents in the classroom and human capital development: evidence from randomized class assignments in China," Finance Research Letters, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:finlet:v:104:y:2026:i:c:s154461232600735x
    DOI: 10.1016/j.frl.2026.110207
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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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