. But the linear-in-means model masks considerable heterogeneity in the effects experienced by different types of students …. Using nonlinear models, one prevalent finding is larger peer effects in which high ability students benefit from the … presence of other high ability students. Studies that stratify students by race and ability often find that students are …

students with the same ability have a different rank in their respective cohort, the higher- ranked student is significantly …-ranked students under-invest in their human capital even if they have a high ability compared to most students of the same age …. Exploring potential channels, we find that students with a higher rank have higher expectations about their future career, a …