Abstract:
We estimate peer effects for fourth graders in six European countries. The identificationrelies on variation across classes within schools. We argue that classes within primaryschools are formed roughly randomly with respect to family background. Similar to previousstudies, we find sizeable estimates of peer effects in standard OLS specifications. The size ofthe estimate is much reduced within schools. This could be explained either by selection intoschools or by measurement error in the peer background variable. When we correct formeasurement error we find within school estimates close to the original OLS estimates. Ourresults suggest that the peer effect is modestly large, measurement error is important in oursurvey data, and selection plays little role in biasing peer effects estimates. We find nosignificant evidence of non-linear peer effects.
Downloads: (external link) http://cee.lse.ac.uk/ceedps/ceedp65.pdf (application/pdf) Our link check indicates that this URL is bad, the error code is: 404 Not Found