Peer Effects and Human Capital Accumulation: The Externalities of Add

52 Pages Posted: 23 Sep 2008 Last revised: 23 Mar 2022

See all articles by Anna Aizer

Anna Aizer

Brown University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: September 2008

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

Aizer, Anna, Peer Effects and Human Capital Accumulation: The Externalities of Add (September 2008). NBER Working Paper No. w14354, Available at SSRN: https://ssrn.com/abstract=1271386

Anna Aizer (Contact Author)

Brown University - Department of Economics ( email )

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Providence, RI 02912
United States
401-863-3836 (Phone)

National Bureau of Economic Research (NBER)

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