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On the optimal allocation of students when peer effect works: Tracking vs Mixing

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  • Marisa Hidalgo-Hidalgo

Abstract

The belief that both the behavior and outcomes of students are affected by their peers is important in shaping education policy. I analyze two polar education systems -tracking and mixing- and propose several criteria for their comparison. I find that tracking is the system that maximizes average human capital in societies where the distribution of pre-school achievement is not very dispersed. I also find that when peer effects and individuals’ pre-school achievement are close substitutes, all risk averse individuals prefer mixing.

Suggested Citation

  • Marisa Hidalgo-Hidalgo, 2008. "On the optimal allocation of students when peer effect works: Tracking vs Mixing," Discussion Papers in Economics 08/18, Division of Economics, School of Business, University of Leicester.
  • Handle: RePEc:lec:leecon:08/18
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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. Andreas Ammermueller, 2013. "Institutional Features of Schooling Systems and Educational Inequality: Cross-Country Evidence From PIRLS and PISA," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 190-213, May.

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    More about this item

    Keywords

    Human Capital; Efficiency; Peer Effects; Tracking; Mixing;
    All these keywords.

    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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