Inside the Black Box of Ability Peer Effects: Evidence from Variation in the Proportion of Low Achievers in the Classroom

Abstract:     
We estimate the extent of ability peer effects and explore the mechanisms through which they operate. Using within‐school variation in the proportion of low‐ability students in Israeli schools, we find that the proportion of low‐ability peers has a negative effect on the performance of regular students. An exploration of the underlying mechanisms show that, relative to regular students, low‐ability students report higher levels of satisfaction with their teachers. However, a higher proportion of low‐ability students has detrimental effects on teachers’ pedagogical practices and on the quality of inter‐student and student–teacher relationships, and increases the level of violence and classroom disruptions.

Number of Pages in PDF File: 30

Accepted Paper Series