Heterogeneous peer effects under endogenous selection: An application to local and migrant children in elementary schools in Shanghai

Yuanyuan Chen, Shuaizhang Feng and Chao Yang

China Economic Review, 2024, vol. 87, issue C

Abstract: This paper develops a model that allows for heterogenous contemporaneous peer effects among different types of agents who are endogenously selected into different peer groups. We apply our approach to migrant and local students in Shanghai, where local students all go to public schools, but migrant students are endogenously selected into either public schools or lower-quality private schools. The results suggest large contemporaneous peer effects among all student groups. We conduct policy experiments to examine the effect of transferring migrant students from private schools to public schools, and show that peer effect can be substantially more important than the school effect.

Keywords: Peer effects; Sample selection; Education; Migrant children (search for similar items in EconPapers)
JEL-codes: C31 C34 I21 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:87:y:2024:i:c:s1043951x24000968

DOI: 10.1016/j.chieco.2024.102207

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