Do Peer Groups Matter? Peer Group versus Schooling Effects on Academic Attainment
Cambridge University - Department of Economics
University College London - Department of Economics
Economica, Vol. 70, pp. 31-53, 2003
This paper estimates an educational production function. Educational attainment is a function of peer group, parental input and schooling. Conventional measures of school quality are not good predictors for academic attainment, once we control for peer group effects; parental qualities also have strong effects on academic attainment. This academic attainment is a then a key determinant of subsequent labour market success, as measured by earnings. The main methodological innovation in this paper is the nomination of a set of instruments, very broad regions of birth, which, as a whole, pass close scrutiny for validity and permit unbiased estimation of the production function.
Number of Pages in PDF File: 23
Date posted: April 12, 2003