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PEER GROUP EFFECTS AND OPTIMAL EDUCATION SYSTEM

Marisa Hidalgo-Hidalgo ()

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: The belief that peers' characteristics influence the behavior and outcomes of students in school has been important in shaping public policy. How peers affect individuals depends on the educational system prevailing. I analyze two different systems: tracking and mixing, and I propose several criteria to compare them. I find that at compulsory level, average human capital across the population is maximized under tracking, although tracking does not dominates mixing according to first order stochastic dominance. The education system that maximizes college attendance depends on the income level in the population and on the opportunity cost of college attendance.

Keywords: Peer Effects; Tracking; Mixing; Income Premium (search for similar items in EconPapers)
JEL-codes: D63 I28 J24 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2005-03
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
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http://www.ivie.es/downloads/docs/wpasad/wpasad-2005-12.pdf Fisrt version / Primera version, 2005 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2005-12

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