Peer Effects Heterogeneity and Social Networks in Education

Shkoza, Livia; Uysal, Derya und Pohlmeier, Winfried (6. September 2023): Peer Effects Heterogeneity and Social Networks in Education. Collaborative Research Center Transregio 190, Discussion Paper No. 423

Abstract

This study focuses on the role of heterogeneity in network peer effects by accounting for network-specific factors and different driving mechanisms of peer behavior. We propose a novel Multivariate Instrumental Variable (MVIV) estimator which is consistent for a large number of networks keeping the individual network size bounded. We apply this approach to estimate peer effects on school achievement exploiting the network structure of friendships within classrooms. The empirical evidence presented is based on a unique network dataset from German upper secondary schools. We show that accounting for heterogeneity is not only crucial from a statistical perspective, but also yields new structural insights into how class size and gender composition affect school achievement through peer behavior.

• Dokumententyp: Paper
• Keywords: network heterogeneity; peer effects; multivariate instrumental variables; minimum distance estimation; school achievement
• Fakultät: Volkswirtschaft > Collaborative Research Center Transregio "Rationality and Competition"
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: D85, L14, I21, C30, C36
• Sprache: Englisch