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‘Like with Like’ or ‘Do Like’? Modelling Peer Effects in The Classroom

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This paper reviews the recent peer effects literature and showcases the simultaneous autoregressive model, which integrates aspects of multiple regression modelling, instrumental variables, social network analysis and longitudinal analysis. It describes state of the art techniques for making inferences using survey data, clarifies the assumptions made by statistical models and provides further evidence on the impact of peers in education. The paper includes a case study using data from an Italian survey to study peer effects in relation to university enrollment. The model includes components that control for endogenous, exogenous and correlated peer effects as well as different forms of selection. The evidence presented in the paper suggests that endogenous peer effects have a statistically and substantively significant influence on the probability of enrolling at university, measured over one year. Sensitivity tests suggest that the results of the estimation are robust to confounding due to latent homophily and other potential sources of bias.

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  • Giovanni Abbiati & Jonathan Pratschke, 2021. "‘Like with Like’ or ‘Do Like’? Modelling Peer Effects in The Classroom," CSEF Working Papers 603, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:603
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    Keywords

    Peer effects; Simultaneous auto-regressive models; Education; Social inequalities; University enrollment; Italy.;
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