IDEAS home Printed from https://ideas.repec.org/p/hka/wpaper/2014-016.html
   My bibliography  Save this paper

The Determinants and Consequences of Friendship Composition

Author

Listed:
  • Jason Fletcher

    (University of Wisconsin)

  • Stephen Ross
  • Yuxiu Zhang

Abstract

This paper examines the demographic pattern of friendship links among youth and the impact of those patterns on own educational outcomes using the friendship network data in the Add Health. We develop and estimate a reduced form matching model to predict friendship link formation and identify the parameters based on across-cohort, within school variation in the "supply" of potential friends. We find novel evidence showing that small increases in the share of students with college educated mothers raises the likelihood of friendship links among students with high maternal education, and that small increases in the share of minority students increases the level of racial homophily in friendship patterns. We then use the predicted friendship links from the matching model in an instrumental variable analysis, and find positive effects of friends' high socioeconomic status, as measured by parental education, on own GPA outcomes among girls. The GPA effects are likely driven by science and English grades, and through non-cognitive factors.

Suggested Citation

  • Jason Fletcher & Stephen Ross & Yuxiu Zhang, 2014. "The Determinants and Consequences of Friendship Composition," Working Papers 2014-016, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2014-016
    Note: MIP
    as

    Download full text from publisher

    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Fletcher_Ross_Zhang_2014_determinants-consequences-friendship.pdf
    File Function: First version, 9/1/2014
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2013. "Under Pressure? The Effect of Peers on Outcomes of Young Adults," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 119-153.
    2. 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, September.
    3. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2008. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1150-1196, December.
    4. Raymond Fisman & Sheena S. Iyengar & Emir Kamenica & Itamar Simonson, 2008. "Racial Preferences in Dating," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(1), pages 117-132.
    5. Jason M. Fletcher & Stephen L. Ross, 2011. "Estimating the Effects of Friendship Networks on Health Behaviors of Adolescents," Working papers 2011-26, University of Connecticut, Department of Economics.
    6. Jonathan Guryan & Kory Kroft & Matthew J. Notowidigdo, 2009. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 34-68, October.
    7. Steven Goodreau & James Kitts & Martina Morris, 2009. "Birds of a feather, or friend of a friend? using exponential random graph models to investigate adolescent social networks," Demography, Springer;Population Association of America (PAA), vol. 46(1), pages 103-125, February.
    8. Victor Lavy & Analia Schlosser, 2011. "Mechanisms and Impacts of Gender Peer Effects at School," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 1-33, April.
    9. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    10. Babcock, Phillip, 2008. "From Ties to Gains? Evidence on Connectedness and Human Capital Acquisition," University of California at Santa Barbara, Economics Working Paper Series qt6fw1m0x0, Department of Economics, UC Santa Barbara.
    11. Angrist, J D & Imbens, G W & Krueger, A B, 1999. "Jackknife Instrumental Variables Estimation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 57-67, Jan.-Feb..
    12. Stephen B. Billings & Jonah Rockoff, 2014. "School Segregation, Educational Attainment, and Crime: Evidence from the End of Busing in Charlotte-Mecklenburg," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 435-476.
    13. Blomquist, Soren & Dahlberg, Matz, 1999. "Small Sample Properties of LIML and Jackknife IV Estimators: Experiments with Weak Instruments," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 69-88, Jan.-Feb..
    14. Antoni Calvó-Armengol & Eleonora Patacchini & Yves Zenou, 2009. "Peer Effects and Social Networks in Education," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(4), pages 1239-1267.
    15. Laura M. Argys & Daniel I. Rees, 2008. "Searching for Peer Group Effects: A Test of the Contagion Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 442-458, August.
    16. Scott E. Carrell & Bruce I. Sacerdote & James E. West, 2013. "From Natural Variation to Optimal Policy? The Importance of Endogenous Peer Group Formation," Econometrica, Econometric Society, vol. 81(3), pages 855-882, May.
    17. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    18. Anil Nathan, 2008. "The Effects of Racial and Extracurricular Friendship Diversity on Achievement," Working Papers 0816, College of the Holy Cross, Department of Economics.
    19. Robert Bifulco & Jason M. Fletcher & Stephen L. Ross, 2011. "The Effect of Classmate Characteristics on Post-secondary Outcomes: Evidence from the Add Health," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 25-53, February.
    20. Philip Babcock, 2008. "From Ties to Gains? Evidence on Connectedness and Human Capital Acquisition," Journal of Human Capital, University of Chicago Press, vol. 2(4), pages 379-409.
    21. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc.
    22. Victor Lavy & Analía Schlosser, 2011. "Corrigendum: Mechanisms and Impacts of Gender Peer Effects at School," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 268-268, July.
    23. Mayer, Adalbert & Puller, Steven L., 2008. "The old boy (and girl) network: Social network formation on university campuses," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 329-347, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Luca Paolo Merlino & Max Friedrich Steinhardt & Wren-Lewis Liam, 2022. "The long run impact of childhood interracial contact on residential segregation," Working Papers halshs-03754124, HAL.
    2. Erik Plug & Bas van der Klaauw & Lennart Ziegler, 2018. "Do Parental Networks Pay Off? Linking Children's Labor‐Market Outcomes to Their Parents' Friends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(1), pages 268-295, January.
    3. Stephen Billings & David Deming & Stephen L. Ross, 2016. "Partners in Crime: Schools, Neighborhoods and the Formation of Criminal Networks," Working Papers 2016-006, Human Capital and Economic Opportunity Working Group.
    4. Brunello, Giorgio & Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2020. "Not only in my genes: The effects of peers’ genotype on obesity," Journal of Health Economics, Elsevier, vol. 72(C).
    5. Alena Bicakova & Stepan Jurajda, 2014. "The Quiet Revolution and the Family: Gender Composition of Tertiary Education and Early Fertility Patterns," CERGE-EI Working Papers wp504, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Luca Paolo Merlino & Max Friedrich Steinhardt & Liam Wren-Lewis, 2019. "More than Just Friends? School Peers and Adult Interracial Relationships," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 663-713.
    7. Weiran Huang & Ashlyn Nelson & Stephen L. Ross, 2018. "Foreclosure Spillovers within Broad Neighborhoods," Working papers 2018-23, University of Connecticut, Department of Economics.
    8. Jason M. Fletcher & Stephen L. Ross, 2018. "Estimating the effects of friends on health behaviors of adolescents," Health Economics, John Wiley & Sons, Ltd., vol. 27(10), pages 1450-1483, October.
    9. Giovanni Facchini & Eleonora Patacchini & Max F. Steinhardt, 2015. "Migration, Friendship Ties, and Cultural Assimilation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 619-649, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fletcher, Jason M. & Ross, Stephen L. & Zhang, Yuxiu, 2020. "The consequences of friendships: Evidence on the effect of social relationships in school on academic achievement," Journal of Urban Economics, Elsevier, vol. 116(C).
    2. Landini, Fabio & Montinari, Natalia & Pin, Paolo & Piovesan, Marco, 2016. "Friendship network in the classroom: Parents bias on peer effects," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 56-73.
    3. Alexandra de Gendre & Nicolás Salamanca, 2020. "On the Mechanisms of Ability Peer Effects," Melbourne Institute Working Paper Series wp2020n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Jason M. Fletcher & Stephen L. Ross, 2018. "Estimating the effects of friends on health behaviors of adolescents," Health Economics, John Wiley & Sons, Ltd., vol. 27(10), pages 1450-1483, October.
    5. Claudia Olivetti & Eleonora Patacchini & Yves Zenou, 2020. "Mothers, Peers, and Gender-Role Identity," Journal of the European Economic Association, European Economic Association, vol. 18(1), pages 266-301.
    6. Ozkan Eren, 2017. "Differential Peer Effects, Student Achievement, and Student Absenteeism: Evidence From a Large-Scale Randomized Experiment," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 745-773, April.
    7. Brunello, Giorgio & Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2020. "Not only in my genes: The effects of peers’ genotype on obesity," Journal of Health Economics, Elsevier, vol. 72(C).
    8. Fruehwirth, Jane Cooley & Gagete-Miranda, Jessica, 2019. "Your peers’ parents: Spillovers from parental education," Economics of Education Review, Elsevier, vol. 73(C).
    9. Lépine, Andrea & Estevan, Fernanda, 2021. "Do ability peer effects matter for academic and labor market outcomes?," Labour Economics, Elsevier, vol. 71(C).
    10. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    11. Polipciuc, Maria & Cörvers, Frank & Montizaan, Raymond, 2023. "Peers’ race in adolescence and voting behavior," Economics of Education Review, Elsevier, vol. 97(C).
    12. Stephen L. Ross, 2009. "Social Interactions within Cities: Neighborhood Environments and Peer Relationships," Working papers 2009-31, University of Connecticut, Department of Economics.
    13. Zhao, Liqiu & Zhao, Zhong, 2021. "Disruptive Peers in the Classroom and Students’ Academic Outcomes: Evidence and Mechanisms," Labour Economics, Elsevier, vol. 68(C).
    14. Oleg V. Poldin & Tania P. Simoes & Marcelo Knobel & Maria M. Yudkevich, 2015. "Estimation of Peer Effects with Predicted Social Ties: Evidence from Two Universities in Brazil and Russia," HSE Working papers WP BRP 30/EDU/2015, National Research University Higher School of Economics.
    15. Marco Bertoni & Giorgio Brunello & Lorenzo Cappellari, 2020. "Who benefits from privileged peers? Evidence from siblings in schools," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 893-916, November.
    16. Simone Balestra & Aurélien Sallin & Stefan C. Wolter, 2023. "High-Ability Influencers? The Heterogeneous Effects of Gifted Classmates," Journal of Human Resources, University of Wisconsin Press, vol. 58(2), pages 633-665.
    17. Giulietti, Corrado & Vlassopoulos, Michael & Zenou, Yves, 2022. "Peers, gender, and long-term depression," European Economic Review, Elsevier, vol. 144(C).
    18. Gioia De Melo, 2011. "Peer effects identified through social networks. Evidence from Uruguayan schools," Department of Economics University of Siena 627, Department of Economics, University of Siena.
    19. Luca Paolo Merlino & Max Friedrich Steinhardt & Liam Wren-Lewis, 2019. "More than Just Friends? School Peers and Adult Interracial Relationships," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 663-713.
    20. Wennberg, Karl & Norgren, Axel, 2021. "Models of Peer Effects in Education," Working Papers 21/3, Stockholm School of Economics, Center for Educational Leadership and Excellence.

    More about this item

    Keywords

    Friendship Formation; Grades; Cohort Study; Peer Effects; Non-Cognitive Effects;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hka:wpaper:2014-016. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jennifer Pachon (email available below). General contact details of provider: https://edirc.repec.org/data/mfichus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.