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Peer effects identified through social networks. Evidence from Uruguayan schools

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  • Gioia De Melo
Abstract
This paper provides evidence on peer effects in educational achievement exploiting for the first time a unique data set on social networks within primary schools in Uruguay. The relevance of peer effects in education is still largely debated due to the identification challenges that the study of social interactions poses. I adopt a recently developed identification method that exploits detailed information on social networks, i.e. individual-specific peer groups. This method enables me to disentangle endogenous effects from contextual effects via instrumental variables that emerge naturally from the network structure. Correlated effects are controlled, to some extent, by classroom fixed effects. I find significant endogenous effects in standardized tests for reading and math. A one standard deviation increase in peers’ test score increases the individual’s test score by 40% of a standard deviation. This magnitude is comparable to the effect of having a mother that completed college. By means of a simulation I illustrate that when schools are stratified by socioeconomic status peer effects may operate as amplifiers of educational inequalities.

Suggested Citation

  • Gioia De Melo, 2011. "Peer effects identified through social networks. Evidence from Uruguayan schools," Department of Economics University of Siena 627, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:627
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    Cited by:

    1. Nicola Campigotto & Chiara Rapallini & Aldo Rustichini, 2022. "School friendship networks, homophily and multiculturalism: evidence from European countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1687-1722, October.
    2. Bet Caeyers & Marcel Fafchamps, 2016. "Exclusion Bias in the Estimation of Peer Effects," NBER Working Papers 22565, National Bureau of Economic Research, Inc.
    3. Giovanni Abbiati & Jonathan Pratschke, 2021. "‘Like with Like’ or ‘Do Like’? Modelling Peer Effects in The Classroom," CSEF Working Papers 603, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    4. Bet Caeyers, 2014. "Peer effects in development programme awareness of vulnerable groups in rural Tanzania," CSAE Working Paper Series 2014-11, Centre for the Study of African Economies, University of Oxford.
    5. Ariel H. Fambeu, 2019. "Peer Effect and Environmental Responsibility of Enterprises in a Sub-Saharan African Country," Economics Bulletin, AccessEcon, vol. 39(2), pages 1084-1094.
    6. Bet Caeyers, 2014. "Exclusion bias in empirical social interaction models: causes, consequences and solutions," CSAE Working Paper Series 2014-05, Centre for the Study of African Economies, University of Oxford.
    7. Landini, Fabio & Montinari, Natalia & Pin, Paolo & Piovesan, Marco, 2016. "Friendship network in the classroom: Parents bias on peer effects," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 56-73.
    8. Izaguirre, Alejandro & Di Capua, Laura, 2020. "Exploring peer effects in education in Latin America and the Caribbean," Research in Economics, Elsevier, vol. 74(1), pages 73-86.
    9. repec:oxf:wpaper:wps/2014-11 is not listed on IDEAS
    10. Kexin Zhao & Bin Zhang & Xue Bai, 2018. "Estimating Contextual Motivating Factors in Virtual Interorganizational Communities of Practice: Peer Effects and Organizational Influences," Information Systems Research, INFORMS, vol. 29(4), pages 910-927, December.
    11. Javier García-Brazales, 2020. "Caste in Class: Evidence from Peers and Teachers," Working Papers wp2020_2018, CEMFI.
    12. de Souza, Laeticia R. & de Xavier Pinto, Cristine Campos & Queiroz, Bernardo L & de Oliveira e Silva, Dimitri, 2021. "Peer effects in college: how peers' performance can influence students' academic outcomes," SocArXiv 7n6ks, Center for Open Science.
    13. repec:oxf:wpaper:wps/2014-05 is not listed on IDEAS

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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