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Peer Group Effects And Optimal Education System

Author

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  • Marisa Hidalgo

    () (Universidad de Alicante)

Abstract

The belief that peers' characteristics influence the behavior and outcomes of students in school has been important in shaping public policy. How peers affect individuals depends on the educational system prevailing. I analyze two different systems: tracking and mixing, and I propose several criteria to compare them. I find that at compulsory level, average human capital across the population is maximized under tracking, although tracking does not dominates mixing according to first order stochastic dominance. The education system that maximizes college attendance depends on the income level in the population and on the opportunity cost of college attendance.

Suggested Citation

  • Marisa Hidalgo, 2005. "Peer Group Effects And Optimal Education System," Working Papers. Serie AD 2005-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2005-12
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2005-12.pdf
    File Function: Fisrt version / Primera version, 2005
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    References listed on IDEAS

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    Cited by:

    1. Marisa Hidalgo Hidalgo, 2009. "Tracking can be more equitable than mixing: peer effects and college attendance," Working Papers 09.04, Universidad Pablo de Olavide, Department of Economics, revised Jul 2012.
    2. Marisa Hidalgo-Hidalgo, 2007. "On the optimal allocation of students when peer effect works: Tracking vs Mixing," Working Papers 07.14, Universidad Pablo de Olavide, Department of Economics.

    More about this item

    Keywords

    Peer Effects; Tracking; Mixing; Income Premium;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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