Differential Test Performance and Peer Effects

Fuente: arXiv
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Auteurs principaux: Kuersteiner, Guido, Prucha, Ingmar, Zeng, Ying
Format: Preprint
Publié: 2024
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author Kuersteiner, Guido
Prucha, Ingmar
Zeng, Ying
author_facet Kuersteiner, Guido
Prucha, Ingmar
Zeng, Ying
contents We use variation of test scores measuring closely related skills to isolate peer effects. The intuition for our identification strategy is that the difference in closely related scores eliminates factors common to the performance in either test while retaining idiosyncratic test specific variation. Common factors include unobserved teacher and group effects as well as test invariant ability and factors relevant for peer group formation. Peer effects work through idiosyncratic shocks which have the interpretation of individual and test specific ability or effort. We use education production functions as well as restrictions on the information content of unobserved test taking ability to formalize our approach. An important implication of our identifying assumptions is that we do not need to rely on randomized group assignment. We show that our model restrictions are sufficient for the formulation of linear and quadratic moment conditions that identify the peer effects parameter of interest. We use Project STAR data to empirically measure peer effects in kindergarten through third grade classes. We find evidence of highly significant peer effects with magnitudes that are at the lower end of the range of estimates found in the literature.
format Preprint
id arxiv_https___arxiv_org_abs_2406_05283
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Differential Test Performance and Peer Effects
Kuersteiner, Guido
Prucha, Ingmar
Zeng, Ying
General Economics
Economics
We use variation of test scores measuring closely related skills to isolate peer effects. The intuition for our identification strategy is that the difference in closely related scores eliminates factors common to the performance in either test while retaining idiosyncratic test specific variation. Common factors include unobserved teacher and group effects as well as test invariant ability and factors relevant for peer group formation. Peer effects work through idiosyncratic shocks which have the interpretation of individual and test specific ability or effort. We use education production functions as well as restrictions on the information content of unobserved test taking ability to formalize our approach. An important implication of our identifying assumptions is that we do not need to rely on randomized group assignment. We show that our model restrictions are sufficient for the formulation of linear and quadratic moment conditions that identify the peer effects parameter of interest. We use Project STAR data to empirically measure peer effects in kindergarten through third grade classes. We find evidence of highly significant peer effects with magnitudes that are at the lower end of the range of estimates found in the literature.
title Differential Test Performance and Peer Effects
topic General Economics
Economics
url https://arxiv.org/abs/2406.05283