Be as Careful of the Books You Read as of the Company You Keep: Evidence on Peer Effects in Educational Choices

Giacomo De Giorgi, Michele Pellizzari and Silvia Redaelli ()
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Silvia Redaelli: Bocconi University

No 2833, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we investigate whether peers’ behavior influences the choice of college major. Using a unique dataset of students at Bocconi University and exploiting the organization of teaching at this institution, we are able to identify the endogenous effect of peers on such decision through a novel identification strategy which solves the common econometric problems of studies of social interactions. Results show that, indeed, one is more likely to choose a major when many of her peers make the same choice. We estimate that, when it diverts students from majors in which they seem to have a relative ability advantage, this effect leads to lower average grades and graduation mark, a penalty that could cost up to 1,117 USD a year in the labor market.

Keywords: social interaction; education; peer effects; reflection (search for similar items in EconPapers)
JEL-codes: I21 J0 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2007-06
New Economics Papers: this item is included in nep-edu and nep-ure
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Citations: View citations in EconPapers (23)

Published - Revised version published as "Identifcation of Social Interactions through Partially Overlapping Peer Groups" in: American Economic Journal: Applied Economics, 2010, 2(2), 241-75

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