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Do Peers Affect Student Achievement?

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Do Peers Affect Student Achievement?

by Eric A. Hanushek, John F. Kain, Jacob M. Markman, and Steven G. Rivkin*

December 1999

Abstract Empirical analysis of peer effects on student achievement has been limited, and what exists has been open to question because of the difficulties of identifying peer effects per se. Our strategy to identify peer group effects involves the elimination of problems introduced by unmeasured or mismeasured influences on achievement through the estimation of achievement growth models with fixed individual and school-by-grade effects. Our basic estimation of elementary school achievement growth indicates that the achievement level and racial composition of peers has a direct influence on achievement. All students appear to benefit from having higher achieving schoolmates, although the effect is quite small. The variance in achievement appears to have no systematic influence, and the effects of mean differences in peer achievement levels are roughly constant across quartiles of the achievement distribution – suggesting that ability grouping policies have primary influence on the distribution of performance and not the level. Moreover, ceteris paribus schools with higher concentrations of minority students lead to lower achievement for Black students but minimal effects on whites or Hispanics.

Paper prepared for the
Conference on Empirics of Social Interactions
Brookings Institution
January 14-15, 2000 * University of Rochester and National Bureau of Economic Research; University of Texas at Dallas; Amherst
College; and Amherst College, respectively. Support for this work has been provided by the Spencer
Foundation, the Mellon Foundation, the Smith Richardson Foundation, and the Packard Humanities Institute. Do Peers Affect Student Achievement? by Eric

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