Understanding Peer Effects: On the Nature, Estimation and Channels of Peer Effects

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 9448

Classification and Topics

• Classification: Wirtschaft ; Analysis of Education ; Education and Inequality ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: estimation bias ; measurement error ; higher education ; peer effects

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Feld, Jan ; Zölitz, Ulf
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/124966
• Last update: 10.03.2025, 11:43 AM CET