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Peer Effects and Human Capital Accumulation: the Externalities of ADD

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  • Anna Aizer

Abstract

Recent work shows that peers affect student achievement, but the mechanisms are not well understood. I show that peer behavior is an important mechanism, perhaps more so than ability, by exploiting exogenous timing in diagnosis/treatment of ADD among peers that improves peer behavior while holding peer achievement constant. Improvements in peer behavior increase student achievement. Moreover, resources mitigate the negative effects of peer behavior. These findings imply that the optimal response in the presence of peer effects is not necessarily to reorganize classrooms. Rather, existing institutions can modify peer effects by improving behavior and/or mitigating the impact of poor behavior.

Suggested Citation

  • Anna Aizer, 2008. "Peer Effects and Human Capital Accumulation: the Externalities of ADD," NBER Working Papers 14354, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:14354
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    References listed on IDEAS

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    2. Andreas Ammermueller & Jörn-Steffen Pischke, 2006. "Peer Effects in European Primary Schools: Evidence from PIRLS," CEE Discussion Papers 0065, Centre for the Economics of Education, LSE.
    3. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I2 - Health, Education, and Welfare - - Education

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