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Group Effects and Economic Outcomes

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  • Bruce A. Weinberg

Abstract

Peers and social groups have been implicated in individuals' decisions to drop out of school, quit work, go on welfare, commit crime, have children out of marriage, use controlled substances, and default on mortgages. Indeed, groups are often seen as central to these behaviors. Motivated by the belief that groups have both positive and negative effects on behaviors and outcomes, policymakers have long sought to manipulate the groups to which people are exposed through policies such as schools integration and the shift from high-rise public housing to scattered-site public housing. This report discusses the state of research on the effects of groups with an eye to drawing out policy implications.

Suggested Citation

  • Bruce A. Weinberg, 2010. "Group Effects and Economic Outcomes," Community Reinvestment Report, Federal Reserve Bank of Cleveland, issue Fall, pages 1-8.
    • Handle: RePEc:fip:fedccr:00002
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