Scandinavian Working Papers in Business Administration

Working Papers,
Stockholm School of Economics, Center for Educational Leadership and Excellence

No 21/3: Models of Peer Effects in Education

Karl Wennberg () and Axel Norgren ()
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Karl Wennberg: Stockholm School of Economics, Postal: Stockholm School of Economics, Center for Education and Leadership Excellence, Saltmätargatan 13-17, P.O. Box 6501, 113 83 Stockholm
Axel Norgren: Stockholm School of Economics, Postal: Stockholm School of Economics, Center for Education and Leadership Excellence, Saltmätargatan 13-17, P.O. Box 6501, 113 83 Stockholm

Abstract: This paper summarizes the current state of research on peer effects in education. Focusing on specific models of peer effects and their underlying theoretical rationales, we review empirical evidence for these models and their implications for future research and discuss potential implications for educational policy. Our review highlights evidence for various types of peer effects to be sensitive to research design, data and study context. We propose a broader utilization of models testing various types of peer effects in specific datasets, attention to methodological issues beyond identifying cause- and effect, and further scrutiny of the theoretical mechanisms underlying identified peer effects in educational settings.

Keywords: Peer effects; Literature review

25 pages, November 30, 2021

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