Neighborhood Peer Effects in Secondary School Enrollment Decisions

Gustavo Bobonis and Frederico Finan

The Review of Economics and Statistics, 2009, vol. 91, issue 4, 695-716

Abstract: This paper identifies neighborhood peer effects on children's school enrollment decisions using experimental evidence from the Mexican PROGRESA program. We use exogenous variation in the school participation of program-eligible children to identify peer effects on the schooling decisions of ineligible children residing in treatment communities. We find that peers have considerable influence on the enrollment decisions of program-ineligible children, and these effects are concentrated among children from poorer households. These findings imply that policies aimed at encouraging enrollment can produce large social multiplier effects. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2009
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