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Social policy gone bad educationally: unintended peer effects from transferred students

Author

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  • Genakos, Christos
  • Kyrkopoulou, Eleni

Abstract

What is the impact of an increase of lower-ability students in a university class? We examine a natural experiment in which students from large, low-income families had the chance to transfer to academic programs at a local university. Multiple law changes meant that there was significant, quasi-random variability in the number of transferred students over time, which was orthogonal to the quality of receiving students. We create a novel dataset for the top economics department in Greece and show that the social policy had a negative educational impact by uniformly lowering recipient students' academic performance once the proportion of transferred students exceeded a certain threshold.

Suggested Citation

  • Genakos, Christos & Kyrkopoulou, Eleni, 2026. "Social policy gone bad educationally: unintended peer effects from transferred students," LSE Research Online Documents on Economics 137495, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:137495
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    File URL: https://researchonline.lse.ac.uk/id/eprint/137495/
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    Keywords

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    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I20 - Health, Education, and Welfare - - Education - - - General

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