This article analyses the school performance of migrants dependent on peer groups in different international schooling environments. Using data from the international OECD PISA test, we consider social interaction within and between groups of natives and migrants. Results based on social...

In community development, education provision and organisational design, private firms manage peer effects by sorting agents into different neighbourhoods, schools and teams. This paper considers such a firm who controls group entry by setting a series of anonymous prices. We show that private...

This paper analyzes social group formation when agents are subject to peer effects within groups increasing human capital and instantaneous utility. When agents are heterogeneous on two dimensions, ability and social skills, and monetary payments are not feasible the model predicts segregation...

This article examines optimal social linkage when each individual's repeated interaction with each of his neighbors creates spillovers. Each individual's discount factor is randomly determined. A planner chooses a local interaction network or neighborhood design before the discount factors are...

Using self-reported academic honor violations from the classes of 1959 through 2002 at the three major U.S. military service academies (Air Force, Army, and Navy), we measure how peer honesty influences individual cheating behavior. All else equal, we find higher levels of peer cheating result...

An instrumental variables strategy is employed to determine whether the observed association between individual human capital and average skills in ethnic groups (ethnic capital), even after conditioning on parental skills, is due to ethnic peer effects. The instrument for ethnic capital is...

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

This article studies how distributional tensions can act in many different ways depending on the social affinity between the different economic classes and their prospect of upward or downward mobility. We consider that socioeconomic group membership through its implied social interactions and...

Empirical findings that minorities typically attain lower economic status than majorities and that relatively larger minorities perform worse than smaller ones pose a challenge to economics. To explain this scale puzzle, I model an economy where the society is bifurcated into two social groups...

Empirical findings that minorities typically attain lower economic status than majorities and that relatively larger minorities perform worse than smaller ones pose a challenge to economics. To explain this scale puzzle, I model an economy where the society is bifurcated into two social groups...