Peer Effects, Cooperation and Competition in Human Capital Formation
Economic literature has identified positive effects of peer abilities on individual achievement. However, the intuitive arguments supporting this evidence are not clear. This article presents a specific mechanism: cooperation and competition among group members; more precisely, the presence of positive and negative externalities in human capital accumulation. First, I develop an economic model that incorporates both kinds of externalities and shows the existence of an optimal level of competition between group members that maximizes human capital accumulation. Then, using data from PISA (2000) and an empirical strategy that controls for potential endogeneity issues, I find empirical evidence supporting the main results of the theoretical model. Namely, I find robust evidence of a non-linear effect of competition on academic performance. These results are consistent with the proposed model and the presence of positivetechnological externalities in educational production functions.
|Date of creation:||11 Jun 2012|
|Date of revision:|
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Christiane Schwieren & Doris Weichselbaumer, 2008.
"Does competition enhance performance or cheating? A laboratory experiment,"
Economics working papers
2008-01, Department of Economics, Johannes Kepler University Linz, Austria.
- Schwieren, Christiane & Weichselbaumer, Doris, 2010. "Does competition enhance performance or cheating? A laboratory experiment," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 241-253, June.
- Christiane Schwieren & Doris Weichselbaumer, 2008. "Does competition enhance performance or cheating? A laboratory experiment," NRN working papers 2008-05, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- Schwieren, Christiane & Weichselbaumer, Doris, 2008. "Does Competition Enhance Performance or Cheating? A Laboratory Experiment," IZA Discussion Papers 3275, Institute for the Study of Labor (IZA).
- 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.
- Becker, William E. & Rosen, Sherwin, 1992.
"The learning effect of assessment and evaluation in high school,"
Economics of Education Review,
Elsevier, vol. 11(2), pages 107-118, June.
- Becker, W. & Rosen, S., 1990. "The Learning Effect Of Assessment And Evaluation In High School," University of Chicago - Economics Research Center 90-7, Chicago - Economics Research Center.
- Dan T. Rosenbaum, 2000. "Ability, Educational Ranks, and Labor Market Trends: The Effects of Shifts in the Skill Composition of Educational Groups," JCPR Working Papers 146, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Bratti, Massimiliano & Checchi, Daniele & Filippin, Antonio, 2008.
"Should You Compete or Cooperate with Your Schoolmates?,"
IZA Discussion Papers
3599, Institute for the Study of Labor (IZA).
- Massimiliano Bratti & Daniele Checchi & Antonio Filippin, 2011. "Should you compete or cooperate with your schoolmates?," Education Economics, Taylor & Francis Journals, vol. 19(3), pages 275-289.
- Antonio Filippin & Massimiliano Bratti & Daniele Checchi, 2008. "Should you compete or cooperate with your schoolmates?," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1074, Universitá degli Studi di Milano.
- Giorgio Brunello & Maria De Paola & Vincenzo Scoppa, 2009.
"Peer Effects in Higher Education: Does the Field of Study Matter?,"
"Marco Fanno" Working Papers
0092, Dipartimento di Scienze Economiche "Marco Fanno".
- Giorgio Brunello & Maria De Paola & Vincenzo Scoppa, 2010. "Peer Effects In Higher Education: Does The Field Of Study Matter?," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 621-634, 07.
- Andrei Shleifer, 2004.
"Does Competition Destroy Ethical Behavior?,"
NBER Working Papers
10269, National Bureau of Economic Research, Inc.
- Esther Duflo & Pascaline Dupas & Michael Kremer, 2008.
"Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya,"
NBER Working Papers
14475, National Bureau of Economic Research, Inc.
- Esther Duflo & Pascaline Dupas & Michael Kremer, 2011. "Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," American Economic Review, American Economic Association, vol. 101(5), pages 1739-74, August.
- Duflo, Esther & Dupas, Pascaline & Kremer, Michael, 2008. "Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," CEPR Discussion Papers 7043, C.E.P.R. Discussion Papers.
- Daniel Mejía & Marc St-Pierre, 2007. "Human capital formation, inequality, and competition for jobs," DOCUMENTOS CEDE 004105, UNIVERSIDAD DE LOS ANDES-CEDE.
- Edward P. Lazear & Sherwin Rosen, 1979.
"Rank-Order Tournaments as Optimum Labor Contracts,"
NBER Working Papers
0401, National Bureau of Economic Research, Inc.
- M. Bigoni & M. Fort & M. Nardotto & T. Reggiani, 2011. "Teams or Tournaments? A Field Experiment on Cooperation and Competition in Academic Achievement," Working Papers wp752, Dipartimento Scienze Economiche, Universita' di Bologna.
- Steven Yamarik, 2007. "Does Cooperative Learning Improve Student Learning Outcomes?," The Journal of Economic Education, Taylor & Francis Journals, vol. 38(3), pages 259-277, July.
When requesting a correction, please mention this item's handle: RePEc:col:000089:009795. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Universidad De Los Andes-Cede)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.