The impact of sampling variation on peer measures: a comment on a proposal to adjust estimates for measurement error

Perdo N. Silva (pedro-luis.silva@ibge.gov.br), John Micklewright (j.micklewright@ucl.ac.uk) and Sylke Schnepf
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Perdo N. Silva: Instituto Brasileiro de Geografia e Estatística, Rio de Janeiro

No 12-12, DoQSS Working Papers from Quantitative Social Science - UCL Social Research Institute, University College London

Abstract: Investigation of peer effects on pupil’s achievement with survey data on samples of schools and pupils within schools may mean that only a random sample of peers is observed for each individual pupil. This generates classical measurement error on peer variables. Hence under OLS model fitting the estimated peer group effects in a regression model are biased towards zero (attenuation). A simple adjustment for this kind of measurement error was proposed by Neidell and Waldfogel (2008). We review the derivation of the simple adjustment and suggest that it is not properly justified.

Keywords: Peer effects; measurement error; school surveys; sampling variation. (search for similar items in EconPapers)
JEL-codes: C21 C81 I21 (search for similar items in EconPapers)
Date: 2012-12-20
New Economics Papers: this item is included in nep-ecm and nep-ure
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Citations: View citations in EconPapers (1)

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