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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 Note: CH ED HE LS PE
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    File URL: http://www.nber.org/papers/w14354.pdf
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    References listed on IDEAS

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    1. Joshua D. Angrist & Kevin Lang, 2002. "How Important are Classroom Peer Effects? Evidence from Boston's Metco Program," NBER Working Papers 9263, National Bureau of Economic Research, Inc.
    2. 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.
    3. Currie, Janet & Stabile, Mark, 2006. "Child mental health and human capital accumulation: The case of ADHD," Journal of Health Economics, Elsevier, vol. 25(6), pages 1094-1118, November.
    4. Ammermüller, Andreas & Pischke, Jörn-Steffen, 2006. "Peer Effects in European Primary Schools: Evidence from PIRLS," ZEW Discussion Papers 06-027, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
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    Cited by:

    1. Chin, Aimee & Daysal, N. Meltem & Imberman, Scott A., 2013. "Impact of bilingual education programs on limited English proficient students and their peers: Regression discontinuity evidence from Texas," Journal of Public Economics, Elsevier, pages 63-78.
    2. Stephen L. Ross, 2009. "Social Interactions within Cities: Neighborhood Environments and Peer Relationships," Working papers 2009-31, University of Connecticut, Department of Economics.
    3. Mary A. Burke & Tim R. Sass, 2013. "Classroom Peer Effects and Student Achievement," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 51-82.
    4. Scott A. Imberman & Adriana D. Kugler & Bruce I. Sacerdote, 2012. "Katrina's Children: Evidence on the Structure of Peer Effects from Hurricane Evacuees," American Economic Review, American Economic Association, vol. 102(5), pages 2048-2082, August.
    5. Hill, Andrew J., 2014. "The costs of failure: Negative externalities in high school course repetition," Economics of Education Review, Elsevier, vol. 43(C), pages 91-105.
    6. Chorniy, Anna & Kitashima, Leah, 2016. "Sex, drugs, and ADHD: The effects of ADHD pharmacological treatment on teens' risky behaviors," Labour Economics, Elsevier, vol. 43(C), pages 87-105.
    7. Chorniy, Anna, 2016. "Sex, Drugs, and ADHD: The Effects of ADHD Pharmacological Treatment on Teens' Risky Behaviors," Annual Conference 2016 (Augsburg): Demographic Change 145766, Verein für Socialpolitik / German Economic Association.
    8. Bokhari, Farasat A.S. & Schneider, Helen, 2011. "School accountability laws and the consumption of psychostimulants," Journal of Health Economics, Elsevier, vol. 30(2), pages 355-372, March.
    9. Schwandt, Hannes & Wuppermann, Amelie, 2016. "The youngest get the pill: ADHD misdiagnosis in Germany, its regional correlates and international comparison," Labour Economics, Elsevier, vol. 43(C), pages 72-86.
    10. Hannes Schwandt & Amelie Wuppermann, 2015. "The youngest Get the Pill: ADHD Misdiagnosis and the Production of Education in Germany," CEP Discussion Papers dp1394, Centre for Economic Performance, LSE.
    11. Anette Primdal Kvist & Helena Skyt Nielsen & Marianne Simonsen, 2011. "The effects of Children’s ADHD on Parents’ Relationship Dissolution and Labor Supply," Economics Working Papers 2011-14, Department of Economics and Business Economics, Aarhus University.
    12. Xu, Yilan & Beller, Andrea H. & Roberts, Brent W. & Brown, Jeffrey R., 2015. "Personality and young adult financial distress," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 90-100.
    13. Jason Fletcher & Nicole Hair & Barbara Wolfe, 2012. "Am I my Brother's Keeper? Sibling Spillover Effects: The Case of Developmental Disabilities and Externalizing Behavior," CEPR Discussion Papers 668, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    14. Victor Lavy & M. Daniele Paserman & Analia Schlosser, 2008. "Inside the Black of Box of Ability Peer Effects: Evidence from Variation in the Proportion of Low Achievers in the Classroom," NBER Working Papers 14415, National Bureau of Economic Research, Inc.
    15. Victor Lavy & Olmo Silva & Felix Weinhardt, 2009. "The Good, the Bad and the Average: Evidence on the Scale and Nature of Ability Peer Effects in Schools," NBER Working Papers 15600, National Bureau of Economic Research, Inc.
    16. Horoi, Irina & Ost, Ben, 2015. "Disruptive peers and the estimation of teacher value added," Economics of Education Review, Elsevier, vol. 49(C), pages 180-192.
    17. repec:pit:wpaper:396 is not listed on IDEAS
    18. Evans, William N. & Morrill, Melinda S. & Parente, Stephen T., 2010. "Measuring inappropriate medical diagnosis and treatment in survey data: The case of ADHD among school-age children," Journal of Health Economics, Elsevier, vol. 29(5), pages 657-673, September.

    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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