McVicar, Duncan - Melbourne Institute of Applied Economic and Social … - 2012
/16 years across 13 European countries. Both instrumental variables and school fixed effects are used for identification …. Omitting school fixed effects, as in some existing IV studies of peer effects, is shown to lead to substantial overestimates … consistent with endogenous sorting into schools. When fixed effects are included, estimated peer effects range from 0.04 to 0 …