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Who benefits from privileged peers? Evidence from siblings in schools

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  • Marco Bertoni
  • Giorgio Brunello
  • Lorenzo Cappellari
Abstract
By comparing siblings attending the same school at different points in time, we investigate whether the effect of peer quality on long‐term labor market outcomes varies with parental background. We find that exposure to better peers—who have higher mean parental education—increases lifetime earnings of disadvantaged students, coming from families with low parental education, but penalizes privileged students from better educated families. These results suggest that desegregation policies that allocate disadvantaged students to schools with better peers produce long‐term benefits. We discuss mechanisms and show that human capital accumulation, ordinal rank and network effects contribute to explain our findings.

Suggested Citation

  • Marco Bertoni & Giorgio Brunello & Lorenzo Cappellari, 2020. "Who benefits from privileged peers? Evidence from siblings in schools," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 893-916, November.
    • Handle: RePEc:wly:japmet:v:35:y:2020:i:7:p:893-916
    DOI: 10.1002/jae.2787
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    3. Humlum, Maria Knoth & Thorsager, Mette, 2021. "The Importance of Peer Quality for Completion of Higher Education," Economics of Education Review, Elsevier, vol. 83(C).
    4. Ludovica Gazze & Claudia Persico & Sandra Spirovska, 2024. "The Long-Run Spillover Effects of Pollution: How Exposure to Lead Affects Everyone in the Classroom," Journal of Labor Economics, University of Chicago Press, vol. 42(2), pages 357-394.
    5. Feng, Shuaizhang & Kim, Jun Hyung & Yang, Zhe, 2021. "Effects of Childhood Peers on Personality Skills," GLO Discussion Paper Series 1004, Global Labor Organization (GLO).
    6. Sarah Cattan & Kjell Salvanes & Emma Tominey, 2022. "First Generation Elite: The Role of School Networks," Working Papers 2022-028, Human Capital and Economic Opportunity Working Group.
    7. Elisa Facchetti & Lorenzo Neri & Marco Ovidi, 2021. "Should you Meet The Parents? The impact of information on non-test score attributes on school choice," DISCE - Working Papers del Dipartimento di Economia e Finanza def113, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    8. Bertoni, M.; & Marin-Lopez, B.A.; & Sanz-de-Galdeano, A.;, 2023. "Subjective Gender-Based Patterns in ADHD Diagnosis," Health, Econometrics and Data Group (HEDG) Working Papers 23/17, HEDG, c/o Department of Economics, University of York.

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