Researchers and educators often argue that a student's peers strongly influence his or her educational outcomes. If so, an unequal distribution of advantaged and disadvantaged students across schools in a community will leave many students doubly disadvantaged and amplify existing inequalities....

A number of studies have indicated that peer smoking is a highly influential factor in a young person's decision to smoke. However, these results are suspect because the studies often fail to account for selection and simultaneity bias. This paper develops an econometric model of youth smoking...

Abstract This paper describes and implements a simple partial solution to the most common problem in applied microeconometrics: estimating a linear causal effect with a potentially endogenous explanatory variable and no suitable instrumental variables. Empirical researchers faced with this...

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...