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Dynamic Aspects of Teenage Friendships and Educational Attainment

  • Patacchini, Eleonora

    ()

    (La Sapienza University of Rome, EIEF, IZA and CEPR.)

  • Rainone, Edoardo

    ()

    (La Sapienza University of Rome)

  • Zenou, Yves

    ()

    (Stockholm University, Research Institute of Industrial Economics (IFN), GAINS, IZA and CEPR. Email:)

We study peer effects in education. We first develop a network model that predicts a relationship between own education and peers’ education as measured by direct links in the social network. We then test this relationship using the four waves of the AddHealth data, looking at the impact of school friends nominated in the first wave in 1994-1995 on own educational outcome reported in the fourth wave in 2007-2008. We find that there are strong and persistent peer effects in education since a standard deviation increase in peers’ education attainment translates into roughly a 10 percent increase of a standard deviation in the individual’s education attainment (roughly 3.5 more months of education). We also find that peer effects are in fact significant only for adolescents who were friends in grades 10-12 but not for those who were friends in grades 7-9. This might indicate that social norms are important in educational choice since the individual’s choice of college seems to be influenced by that of friends in the two last years of high school.

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Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2011:4.

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Length: 32 pages
Date of creation: 25 Jan 2011
Date of revision:
Handle: RePEc:hhs:sunrpe:2011_0004
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Department of Economics, Stockholm, S-106 91 Stockholm, Sweden

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Web page: http://www.ne.su.se/
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  1. David Card & Jesse Rothstein, 2005. "Racial Segregation and the Black-White Test Score Gap," Working Papers 93, Princeton University, Department of Economics, Center for Economic Policy Studies..
  2. Lee, Lung-fei, 2007. "Identification and estimation of econometric models with group interactions, contextual factors and fixed effects," Journal of Econometrics, Elsevier, vol. 140(2), pages 333-374, October.
  3. 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.
  4. Calvó-Armengol, Antoni & Patacchini, Eleonora & Zenou, Yves, 2008. "Peer Effects and Social Networks in Education," CEPR Discussion Papers 7060, C.E.P.R. Discussion Papers.
  5. Liu, Xiaodong & Lee, Lung-fei, 2010. "GMM estimation of social interaction models with centrality," Journal of Econometrics, Elsevier, vol. 159(1), pages 99-115, November.
  6. Eric D. Gould & Victor Lavy & M. Daniele Paserman, 2009. "Sixty Years after the Magic Carpet Ride: The Long-Run Effect of the Early Childhood Environment on Social and Economic Outcomes," NBER Working Papers 14884, National Bureau of Economic Research, Inc.
  7. Patacchini, Eleonora & Zenou, Yves, 2004. "Intergenerational Education Transmission: Neighborhood Quality and/or Parents' Involvement?," Working Paper Series 631, Research Institute of Industrial Economics.
  8. Clark, Andrew E. & Loheac, Youenn, 2007. ""It wasn't me, it was them!" Social influence in risky behavior by adolescents," Journal of Health Economics, Elsevier, vol. 26(4), pages 763-784, July.
  9. Lee, Lung-Fei & Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves, 2011. "Criminal Networks: Who is the Key Player?," CEPR Discussion Papers 8185, C.E.P.R. Discussion Papers.
  10. Cohen-Cole, Ethan, 2006. "Multiple groups identification in the linear-in-means model," Economics Letters, Elsevier, vol. 92(2), pages 157-162, August.
  11. Dominique Goux & Eric Maurin, 2007. "Close Neighbours Matter: Neighbourhood Effects on Early Performance at School," Economic Journal, Royal Economic Society, vol. 117(523), pages 1193-1215, October.
  12. Eleonora Patacchini & Yves Zenou, 2010. "Juvenile Delinquency and Conformism," Working Papers 2010.59, Fondazione Eni Enrico Mattei.
  13. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
  14. Giacomo De Giorgi & Michele Pellizzari & Silvia Redaelli, 2010. "Identification of Social Interactions through Partially Overlapping Peer Groups," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 241-75, April.
  15. Jeffrey S. Zax & Daniel I. Rees, 2002. "IQ, Academic Performance, Environment, and Earnings," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 600-616, November.
  16. Datcher, Linda P, 1982. "Effects of Community and Family Background on Achievement," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 32-41, February.
  17. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2006. "Who's Who in Networks. Wanted: The Key Player," Econometrica, Econometric Society, vol. 74(5), pages 1403-1417, 09.
  18. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc.
  19. de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
  20. Lee, Lung-Fei, 2002. "Consistency And Efficiency Of Least Squares Estimation For Mixed Regressive, Spatial Autoregressive Models," Econometric Theory, Cambridge University Press, vol. 18(02), pages 252-277, April.
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