Social Comparison and Young Adult Mental Health with Endogenous Network Formation

Junwei Fan, Santiago Montoya-Blandon and Eugenio Proto

No 21916, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We examine how social comparison within endogenously formed peer networks affects different measures of young adult mental health. Using over 2 million smartphone-based communication records from the NetHealth Study, we construct objective social networks among university students and estimate a structural model in which individuals choose their peers and mental health depends on the income of chosen peers. When networks are treated as exogenous, higher average peer income predicts better mental health; once network formation is modelled endogenously, the relationship reverses: exposure to higher-income peers significantly worsens depressive symptoms. Income gaps harm mental health in both directions, consistent with inequality aversion rather than relative deprivation. The reversal survives extending binary links to message-weighted networks, and counterfactual exercises show that policies reducing the volume of messages exchanged with peers improve mental health, increasingly so with the size of the reduction, though the effect of targeted reductions depends on which ties are attenuated. Ignoring endogenous peer selection can thus yield qualitatively misleading conclusions about peer effects on mental health.

JEL-codes: D63 D85 D91 I14 I31 (search for similar items in EconPapers)
Date: 2026-09
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP21916 (application/pdf)

Related works:
Working Paper: Social Comparison and Young Adult Mental Health with Endogenous Network Formation (2026)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:21916

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP21916

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().