Peer Effects and Human Capital Accumulation: the Externalities of ADD

Anna Aizer

NBER Working Paper No. 14354
Issued in September 2008, Revised in December 2011
NBER Program(s):Children, Economics of Education, Health Economics, Labor Studies, Public Economics

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.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14354

Users who downloaded this paper also downloaded* these: