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The Impact of Peer Effects on Student Outcomes in New York City Public Schools

Author

Listed:
  • Jeffrey E. Zabel

    (Economics Department, Tufts University)

Abstract

The impact of peers on student outcomes has important policy implications for how students are organized into classes and the overall impact of education interventions. But it is difficult to accurately measure peer effects because of the nonrandom sorting of students and teachers into classrooms and the endogeneity of peers' achievement. In this study, an education production function (EPF) is specified that includes student and peer characteristics as regressors. This model is estimated using student-level data from New York City public schools for 1995–2000. The richness of these data allows six sources of bias that arise in the EPF model to be addressed, including the above-mentioned nonrandom classroom assignment and the endogeneity of peers' achievement. This results in credible evidence of (small) peer group effects. Instrumenting for the mean of peers' achievement significantly reduces the associated peer effect. Nonlinear peer group effects are evident in the form of a small positive impact associated with the homogeneity of peers' achievement. Generally, peer characteristics do not appear to affect individual performance. Also included in this analysis is an application of a new methodology developed by Graham (2007) that identifies peer group effects through their impact on the variance in classroom mean test scores. The approach is less susceptible to the six biases that plague the EPF approach. The evidence from this exercise indicates that peer group effects are present and corroborates the results from the EPF approach. © 2008 American Education Finance Association

Suggested Citation

  • Jeffrey E. Zabel, 2008. "The Impact of Peer Effects on Student Outcomes in New York City Public Schools," Education Finance and Policy, MIT Press, vol. 3(2), pages 197-249, April.
    • Handle: RePEc:tpr:edfpol:v:3:y:2008:i:2:p:197-249
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/edfp.2008.3.2.197
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    Citations

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    Cited by:

    1. Zhang, Hongliang, 2016. "The role of testing noise in the estimation of achievement-based peer effects," Economics of Education Review, Elsevier, vol. 54(C), pages 113-123.
    2. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    3. Bykhovskaya, Anna, 2020. "Stability in matching markets with peer effects," Games and Economic Behavior, Elsevier, vol. 122(C), pages 28-54.
    4. Iversen, Jon Marius Vaag & Bonesrønning, Hans, 2015. "Conditional gender peer effects?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 55(C), pages 19-28.
    5. James Farrell, 2019. "Peer Effects Among Teachers: A Study of Retirement Investments," Journal of Family and Economic Issues, Springer, vol. 40(3), pages 486-497, September.
    6. Akyol, Pelin & Krishna, Kala, 2017. "Preferences, selection, and value added: A structural approach," European Economic Review, Elsevier, vol. 91(C), pages 89-117.
    7. Boucher, Vincent & Dedewanou, F. Antoine & Dufays, Arnaud, 2022. "Peer-induced beliefs regarding college participation," Economics of Education Review, Elsevier, vol. 90(C).
    8. Ryan Yeung & Phuong Nguyen-Hoang, 2016. "Endogenous peer effects: Fact or fiction?," The Journal of Educational Research, Taylor & Francis Journals, vol. 109(1), pages 37-49, January.
    9. Diego Carrasco-Novoa & Sandro D´ıez-Amigo & Shino Takayama, 2021. "The Impact of Peers on Academic Performance: Theory and Evidence from a Natural Experiment," Discussion Papers Series 644, School of Economics, University of Queensland, Australia.

    More about this item

    Keywords

    peer effects; peer impact; student outcomes; student achievement; education production function; New York Public Schools;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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