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Does Peer Motivation Impact Educational Investments? Evidence From DACA

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  • Briana Ballis

    (University of California, Merced)

Abstract

Despite the significant influence that peer motivation is likely to have on educational investments during high school, it is difficult to test empirically since exogenous changes in peer motivation are rarely observed. In this paper, I focus on the 2012 introduction of Deferred Action for Childhood Arrivals (DACA) to study a setting in which peer motivation changed sharply for a subset of high school students. DACA significantly increased the returns to schooling for undocumented youth, while leaving the returns for their peers unchanged. I find that DACA induced undocumented youth to invest more in their education, which also had positive spillover effects on ineligible students (those born in the US) who attended high school with high concentrations of DACA-eligible youth.

Suggested Citation

  • Briana Ballis, 2021. "Does Peer Motivation Impact Educational Investments? Evidence From DACA," Working Papers 2021-027, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2021-027
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Ballis_2021_peer-motivation-ed-invest-daca.pdf
    File Function: First version, June 1, 2021
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    References listed on IDEAS

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    1. Abramitzky, Ran & Lavy, Victor & Pérez, Santiago, 2021. "The long-term spillover effects of changes in the return to schooling," Journal of Public Economics, Elsevier, vol. 196(C).
    2. George J. Borjas, 2017. "The Earnings of Undocumented Immigrants," NBER Working Papers 23236, National Bureau of Economic Research, Inc.
    3. Abhijit Banerjee & Rukmini Banerji & James Berry & Esther Duflo & Harini Kannan & Shobhini Mukherji & Marc Shotland & Michael Walton, 2016. "Mainstreaming an Effective Intervention: Evidence from Randomized Evaluations of “Teaching at the Right Level” in India," NBER Working Papers 22746, National Bureau of Economic Research, Inc.
    4. Scott E. Carrell & Mark Hoekstra & Elira Kuka, 2018. "The Long-Run Effects of Disruptive Peers," American Economic Review, American Economic Association, vol. 108(11), pages 3377-3415, November.
    5. Ran Abramitzky & Victor Lavy, 2014. "How Responsive Is Investment in Schooling to Changes in Redistributive Policies and in Returns?," Econometrica, Econometric Society, vol. 82(4), pages 1241-1272, July.
    6. Abhijit Banerjee & Rukmini Banerji & Esther Duflo, 2016. "Mainstreaming an Effective Intervention: Evidence from Randomized Evaluations of “Teaching at the Right Level†in India," Working Papers id:11419, eSocialSciences.
    7. Catalina Amuedo-Dorantes & Francisca Antman, 2017. "Schooling and labor market effects of temporary authorization: evidence from DACA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 339-373, January.
    8. Bietenbeck, Jan, 2020. "Own Motivation, Peer Motivation, and Educational Success," IZA Discussion Papers 13872, Institute of Labor Economics (IZA).
    9. Julian Betts & Laura Hill & Karen Bachofer & Joseph Hayes & Andrew Lee & Andrew Zau, 2020. "Effects of English Learner Reclassification Policies on Academic Trajectories," NBER Working Papers 28188, National Bureau of Economic Research, Inc.
    10. Leonardo Bursztyn & Robert Jensen, 2015. "How Does Peer Pressure Affect Educational Investments?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1329-1367.
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    Cited by:

    1. Bietenbeck, Jan, 2020. "Own Motivation, Peer Motivation, and Educational Success," IZA Discussion Papers 13872, Institute of Labor Economics (IZA).
    2. Chesney, Alexander J., 2022. "Should I get a master’s degree?," Economics of Education Review, Elsevier, vol. 91(C).

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    More about this item

    Keywords

    high school; DACA; Deferred Action for Childhood Arrivals; undocumented youth; Spillover effects;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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