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The Long-Run Effects of Peers on Mental Health

Lukas Kiessling and Jonathan Norris

The Economic Journal, 2023, vol. 133, issue 649, 281-322

Abstract: This paper studies how peers in school affect students’ mental health. Guided by a theoretical framework, we find that increasing students’ relative ranks in their cohorts by one standard deviation improves their mental health by 6% of a standard deviation conditional on own ability. These effects are more pronounced for low-ability students, persistent for at least 14 years and carry over to economic long-run outcomes. Moreover, we document a pronounced asymmetry: Students who receive negative rather than positive shocks react more strongly. Our findings therefore provide evidence on how the school environment can have long-lasting consequences for individuals’ well-being.

Date: 2023
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Citations: View citations in EconPapers (7)

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