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Peer Group Effects And Optimal Education System

  • Marisa Hidalgo


    (Universidad de Alicante)

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.

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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-12.

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Length: 38 pages
Date of creation: Mar 2005
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2005-12
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  29. Roemer, J-E & Wets, R-J-B, 1994. "Neighborhood Effects on Belief Formation and the Distribution of Education and Income," Papers 94-02, California Davis - Institute of Governmental Affairs.
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