Working Paper: NBER ID: w12305
Authors: Weili Ding; Steven F. Lehrer
Abstract: Peer effects have figured prominently in debates on school vouchers, desegregation, ability tracking and anti-poverty programs. Compelling evidence of their existence remains scarce for plaguing endogeneity issues such as selection bias and the reflection problem. This paper firmly establishes a link between peer performance and student achievement, using a unique dataset from China. We find strong evidence that peer effects exist and operate in a positive and nonlinear manner; reducing the variation of peer performance increases achievement; and our semi-parametric estimates clarify the tradeoffs facing policymakers in exploiting positive peers effects to increase future achievement.
Keywords: peer effects; student achievement; China; secondary education
JEL Codes: I2; Z13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| variation of peer performance within schools (D29) | student achievement (I24) |
| high-achieving peers (C92) | student achievement (top quantiles) (I24) |
| peer performance (C92) | student achievement (heterogeneous effect) (D29) |
| peer performance (C92) | individual student achievement (I24) |