Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 596: Understanding Peer Effects: On the Nature, Estimation and Channels of Peer Effects

Jan Feld () and Ulf Zölitz ()
Additional contact information
Jan Feld: School of Economics and Finance, Victoria University of Wellington, Postal: P.O. Box 600, Wellington 6140, New Zealand
Ulf Zölitz: Department of Economics, Maastricht University, Postal: P.O. Box 616, 6200 MD, Maastricht, The Netherlands

Abstract: This paper estimates peer effects in a university context where students are randomly assigned to sections. While students benefit from better peers on average, low-achieving students are harmed by high-achieving peers. Analyzing students’ course evaluations suggests that peer effects are driven by improved group interaction rather than adjustments in teachers’ behavior or students' effort. We further show, building on Angrist (2014), that classical measurement error in a setting where group assignment is systematic can lead to substantial overestimation of peer effects. With random assignment, as is the case in our setting, estimates are only attenuated.

Keywords: Peer effects; higher education; estimation bias

JEL-codes: I21; I24; J24

59 pages, First version: June 2014. Revised: October 2015. Earlier revisions: August 2014, October 2015.

Full text files 

36036 HTML file

Download statistics

Published as
Jan Feld and Ulf Zölitz, (2017), 'Understanding Peer Effects: On the Nature, Estimation and Channels of Peer Effects', Journal of Labor Economics, vol 35, no 2, pages 387-428

Questions (including download problems) about the papers in this series should be directed to Jessica Oscarsson ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:gunwpe:0596This page generated on 2024-11-14 18:33:27.