Racial Identity and Education
Stockholm University; Research Institute of Industrial Economics (IUI); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR)
Università di Roma "La Sapienza"; Institute for the Study of Labor (IZA); Einaudi Institute for Economics and Finance (EIEF)
CEPR Discussion Paper No. 5607
We investigate the sources of differences in school performance between students of different races by focusing on identity issues. We find that having a higher percentage of same-race friends has a positive effect of white teenagers' test score while having a negative effect on blacks' test scores. However, the higher the education level of a black teenager's parent, the lower this negative effect, while for whites, it is the reverse. It is thus the combination of the choice of friends (which is a measure of own identity) and the parent's education that are responsible for the difference in education attainment between students of different races but also between students of the same race. One interesting aspects of this paper is to provide a theoretical model that grounds the instrumental variable approach used in the empirical analysis to deal with endogeneity issues.
Number of Pages in PDF File: 45
Keywords: Ethnic minorities, peer effects, education achievement, endogeneity issues
JEL Classification: A14, I21, J15, J24working papers series
Date posted: June 29, 2006
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