Working Paper: CEPR ID: DP15461
Authors: Michele Pellizzari; Giacomo De Giorgi; Tomás Rodríguez Barraquer
Abstract: We propose a model where forward-looking agents first decide to form links with each other and, then, engage in a production activity jointly with their linked peers. Exogenous linking opportunities facilitate the creation of network connections and the return to productive effort varies with the personal attributes of the connected agents. We apply our model to a purposely built dataset of college students containing information on the endogeneous networks of study partners linked with administrative records on the students’ characteristics and academic performance. Identification relies upon the random assignment of students to classrooms, which generates exogenous opportunities for socialisation. Using the estimated structural parameters, we investigate the implications of two counterfactual experiments, one where students are streamed into classes by ability and one with single-sex classes.
Keywords: networks; production; estimation; counterfactual; education
JEL Codes: D85; C15; C73; C63; E23; I23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| peer ability impacts individual student outcomes (I24) | improved academic performance (I24) |
| class composition (A30) | student performance (D29) |
| gender composition (J16) | GPA distribution (C46) |
| structure of peer networks (D85) | effects of educational policies on student performance (H52) |
| variation in socialization opportunities (I24) | peer ability impacts individual student outcomes (I24) |
| random assignment of students to classrooms (C90) | variation in socialization opportunities (I24) |