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The Impact of Peers on Academic Performance: Theory and Evidence from a Natural Experiment

Author

Listed:
  • Diego Carrasco-Novoa

    (School of Economics, University of Queensland, Brisbane, Australia)

  • Sandro D´ıez-Amigo

    (Department of Economics, Massachusetts Institute of Technology)

  • Shino Takayama

    (School of Economics, University of Queensland, Brisbane, Australia)

Abstract

We introduce a flexible theoretical framework to model the mechanics of peer effects in education. Then we take advantage of a natural experiment in order to illustrate how the proposed model can be used to gain additional empirical insights from reduced-form econometric analysis. Leveraging the exogenous variation in peer characteristics generated by the random assignment of freshman college students to their first semester class groups, we observe a negative impact on academic performance of secondary schoolmate presence and concentration in the first semester college classroom, suggesting that in the study context socialization was in overall terms distractive, and that the group structure increased socialization for all students. We also find some evidence of a negative impact of higher average admission scores on academic performance, suggesting that in the study context the direct positive impact of peer mean ability on academic performance was more than eclipsed by the negative effect of higher peer mean ability on self-confidence. Observed peer effects generally persist throughout the duration of undergraduate studies.

Suggested Citation

  • Diego Carrasco-Novoa & Sandro D´ıez-Amigo & Shino Takayama, 2021. "The Impact of Peers on Academic Performance: Theory and Evidence from a Natural Experiment," Discussion Papers Series 644, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uq2004:644
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    File URL: https://economics.uq.edu.au/files/39746/644.pdf
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    References listed on IDEAS

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