On the optimal allocation of students when peer effect works: Tracking vs Mixing

Marisa Hidalgo-Hidalgo

No 08/18, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: The belief that both the behavior and outcomes of students are affected by their peers is important in shaping education policy. I analyze two polar education systems -tracking and mixing- and propose several criteria for their comparison. I find that tracking is the system that maximizes average human capital in societies where the distribution of pre-school achievement is not very dispersed. I also find that when peer effects and individuals’ pre-school achievement are close substitutes, all risk averse individuals prefer mixing.

Keywords: Human Capital; Efficiency; Peer Effects; Tracking, Mixing (search for similar items in EconPapers)
JEL-codes: D63 I28 J24 (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-lab and nep-ure
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Citations: View citations in EconPapers (1)

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Working Paper: On the optimal allocation of students when peer effect works: Tracking vs Mixing (2007)
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