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Peer Effects and Social Networks in Education and Crime

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  • Calvó-Armengol, Antoni
  • Patacchini, Eleonora
  • Zenou, Yves

Abstract

This paper studies whether structural properties of friendship networks affect individual outcomes in education and crime. 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 Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual but puts less weight on her distant friends. 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 Bonacich centrality) is a key determinant of her level of activity. A standard deviation increase in the Bonacich centrality increases the level of individual delinquency by 45% of one standard deviation and the pupil school performance by 34% of one standard deviation.

Suggested Citation

  • Calvó-Armengol, Antoni & Patacchini, Eleonora & Zenou, Yves, 2005. "Peer Effects and Social Networks in Education and Crime," CEPR Discussion Papers 5244, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5244
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Crime, race & incentives
      by chris dillow in Stumbling and Mumbling on 2009-12-13 20:21:16
    2. Evidence for peer effects
      by chris dillow in Stumbling and Mumbling on 2008-06-25 14:28:45
    3. Character vs circumstance
      by chris dillow in Stumbling and Mumbling on 2008-06-12 18:15:15
    4. "Social cleansing" and network effects
      by chris dillow in Stumbling and Mumbling on 2012-04-24 19:28:05
    5. "Social cleansing" and network effects
      by chris dillow in Stumbling and Mumbling on 2012-04-24 19:28:05
    6. Peer effects in companies
      by chris dillow in Stumbling and Mumbling on 2014-08-06 18:22:15

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Paolo Buonanno & Daniel Montolio & Paolo Vanin, 2009. "Does Social Capital Reduce Crime?," Journal of Law and Economics, University of Chicago Press, vol. 52(1), pages 145-170, February.
    2. Jackson, Matthew O. & Zenou, Yves, 2015. "Games on Networks," Handbook of Game Theory with Economic Applications,, Elsevier.
    3. Dimitris Georgarakos & Giacomo Pasini, 2011. "Trust, Sociability, and Stock Market Participation," Review of Finance, European Finance Association, vol. 15(4), pages 693-725.
    4. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2009. "Identification of peer effects through social networks," Journal of Econometrics, Elsevier, vol. 150(1), pages 41-55, May.
    5. Calvo-Armengol, Antoni & Verdier, Thierry & Zenou, Yves, 2007. "Strong and weak ties in employment and crime," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 203-233, February.
    6. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2010. "Delinquent Networks," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 34-61, March.
    7. Xu Lin, 2010. "Identifying Peer Effects in Student Academic Achievement by Spatial Autoregressive Models with Group Unobservables," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 825-860, October.
    8. Timo Hiller, 2012. "Peer Effects in Endogenous Networks," Bristol Economics Discussion Papers 12/633, School of Economics, University of Bristol, UK.
    9. Zenou, Yves, 2005. "Crime, Location and the Housing Market," CEPR Discussion Papers 5389, C.E.P.R. Discussion Papers.
    10. Patacchini, Eleonora & Zenou, Yves, 2008. "The strength of weak ties in crime," European Economic Review, Elsevier, vol. 52(2), pages 209-236, February.
    11. de Martí, Joan & Zenou, Yves, 2009. "Social Networks," IZA Discussion Papers 4621, Institute of Labor Economics (IZA).
    12. Zhao Chen & Shiqing Jiang & Ming Lu & Hiroshi Sato, 2008. "How Do Heterogeneous Social Interactions Affect the Peer Effect in Rural-Urban Migration?: Empirical Evidence from China," Global COE Hi-Stat Discussion Paper Series gd08-008, Institute of Economic Research, Hitotsubashi University.
    13. Hiller, Timo, 2017. "Peer effects in endogenous networks," Games and Economic Behavior, Elsevier, vol. 105(C), pages 349-367.
    14. Chen, Xi & Kanbur, Ravi & Zhang, Xiaobo, 2011. "Peer effects, risk pooling, and status seeking: What explains gift spending escalation in rural China?," IFPRI discussion papers 1151, International Food Policy Research Institute (IFPRI).
    15. Patacchini, Eleonora & Zenou, Yves, 2007. "Ethnicity and Spatial Externalities in Crime," CEPR Discussion Papers 6130, C.E.P.R. Discussion Papers.
    16. Margherita Comola, 2008. "Educational programs in rural Nepal: Peer communication and information spillovers," PSE Working Papers halshs-00585981, HAL.
    17. 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 of Labor Economics (IZA).
    18. Toni Mora, 2010. "BMI and Spanish labour status: evidence by gender from the city of Barcelona," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(3), pages 239-253, June.
    19. Patacchini, Eleonora & Zenou, Yves, 2005. "Crime and Conformism," CEPR Discussion Papers 5331, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    centrality measure; delinquency; network structure; peer influence; school performance;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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