We provide the first empirical application of a new approach proposed by Lee (2007) to estimate peer effects in a linear-in-means model. This approach allows to control for group-level unobservables and to solve the reflection problem. We investigate peer effects in student achievement in...

We estimate the effect of publicly disseminated information about school-level achievement on students' mobility between elementary schools. We find that students are more likely to leave their school when poor school-level performance is revealed. In general, parents respond to information soon...

Data from the Youth in Transition Survey reveal that almost 40% of Canadian youth who left post-secondary education in 1999 had returned two years later. This paper investigates the extent to which schooling discontinuities affect post-graduation starting real wages and whether the latter are...

One reason to be concerned about income inequality is the idea that people not only care about their own absolute income, but also their income relative to various reference groups (e.g. co-workers, friends, neighbors, relatives, etc.). We use Canadian linked employer-employee data to estimate...