IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/1043.html
   My bibliography  Save this paper

Heterogeneous Peer Effects under Endogenous Selection: An Application to Local and Migrant Children in Elementary Schools in Shanghai

Author

Listed:
  • Chen, Yuanyuan
  • Feng, Shuaizhang
  • Yang, Chao

Abstract

This paper develops a model that allows for heterogenous contemporaneous peer effects among different types of agents who are endogenously selected into different peer groups. Using our framework, we characterize the reduced-form coefficient in the peer effect literature and show that it is a priori ambiguous in sign. We apply our approach to migrant and local students in Shanghai, where local students all go to public schools, but migrant students are endogenously selected into either public schools or lower-quality private schools. The results suggest large contemporaneous peer effects among all student groups. We conduct policy experiments to examine the effect of transferring migrant students from private schools to public schools. We show that peer effect can be substantially more important than the school effect in accounting for the total treatment effect of moving to better schools.

Suggested Citation

  • Chen, Yuanyuan & Feng, Shuaizhang & Yang, Chao, 2022. "Heterogeneous Peer Effects under Endogenous Selection: An Application to Local and Migrant Children in Elementary Schools in Shanghai," GLO Discussion Paper Series 1043, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1043
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/249563/1/GLO-DP-1043.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Antoni Calvó-Armengol & Eleonora Patacchini & Yves Zenou, 2009. "Peer Effects and Social Networks in Education," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(4), pages 1239-1267.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrick Bayer & Stephen L. Ross, 2006. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working papers 2006-13, University of Connecticut, Department of Economics, revised Jan 2009.
    2. Silvia Mendolia & Alfredo R Paloyo & Ian Walker, 2018. "Heterogeneous effects of high school peers on educational outcomes," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 613-634.
    3. Francesco Agostinelli & Margaux Luflade & Paolo Martellini, 2021. "On the Spatial Determinants of Educational Access," Working Papers 2021-042, Human Capital and Economic Opportunity Working Group.
    4. Helsley, Robert W. & Zenou, Yves, 2014. "Social networks and interactions in cities," Journal of Economic Theory, Elsevier, vol. 150(C), pages 426-466.
    5. repec:hal:spmain:info:hdl:2441/1jgbspo1909q48svne93o55rca is not listed on IDEAS
    6. Akyol, Metin, 2016. "Do educational vouchers reduce inequality and inefficiency in education?," Economics of Education Review, Elsevier, vol. 55(C), pages 149-167.
    7. Lawrence E. Blume & William A. Brock & Steven N. Durlauf & Rajshri Jayaraman, 2015. "Linear Social Interactions Models," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 444-496.
    8. Patacchini, Eleonora & Rainone, Edoardo & Zenou, Yves, 2011. "Dynamic Aspects of Teenage Friendships and Educational Attainment," Research Papers in Economics 2011:4, Stockholm University, Department of Economics.
    9. Michela Maria Tincani, 2017. "Heterogeneous Peer Effects and Rank Concerns: Theory and Evidence," CESifo Working Paper Series 6331, CESifo.
    10. Chen, Yuanyuan & Feng, Shuaizhang & Yang, Chao, 2022. "Heterogeneous Peer Effects under Endogenous Selection: An Application to Local and Migrant Children in Elementary Schools in Shanghai," IZA Discussion Papers 15070, Institute of Labor Economics (IZA).
    11. Michela Tincani, 2017. "Heterogeneous Peer Effects and Rank Concerns: Theory and Evidence," Working Papers 2017-006, Human Capital and Economic Opportunity Working Group.
    12. Zenou, Yves & Patacchini, Eleonora & Rainone, Edoardo, 2012. "Student Networks and Long-Run Educational Outcomes: The Strength of Strong Ties," CEPR Discussion Papers 9149, C.E.P.R. Discussion Papers.
    13. repec:spo:wpmain:info:hdl:2441/1jgbspo1909q48svne93o55rca is not listed on IDEAS
    14. Dennis J. Zhang & Gad Allon & Jan A. Van Mieghem, 2017. "Does Social Interaction Improve Learning Outcomes? Evidence from Field Experiments on Massive Open Online Courses," Manufacturing & Service Operations Management, INFORMS, vol. 19(3), pages 347-367, July.
    15. Juan Pablo Atal & José Ignacio Cuesta & Felipe González & Cristóbal Otero, 2024. "The Economics of the Public Option: Evidence from Local Pharmaceutical Markets," American Economic Review, American Economic Association, vol. 114(3), pages 615-644, March.
    16. Basteck, Christian & Klaus, Bettina & Kübler, Dorothea, 2021. "How lotteries in school choice help to level the playing field," Games and Economic Behavior, Elsevier, vol. 129(C), pages 198-237.
    17. George A. Akerlof & Rachel E. Kranton, 2002. "Identity and Schooling: Some Lessons for the Economics of Education," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1167-1201, December.
    18. Tiziano Arduini & Eleonora Patacchini & Edoardo Rainone, 2020. "Treatment Effects With Heterogeneous Externalities," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 38(4), pages 826-838, October.
    19. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    20. Robin Boadway & Nicolas Marceau & Maurice Marchand, 1996. "Issues in decentralizing the provision of education," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(3), pages 311-327, July.
    21. Jacob M. Markman & Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2003. "Does peer ability affect student achievement?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 527-544.
    22. Hugh-Jones, David & Ooi, Jinnie, 2023. "Where do fairness preferences come from? Norm transmission in a teen friendship network," European Economic Review, Elsevier, vol. 157(C).

    More about this item

    Keywords

    Peer Effects; Sample Selection; Education; Migrant Children;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:1043. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.