NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

How Does Peer Pressure Affect Educational Investments?

Leonardo Bursztyn, Robert Jensen

NBER Working Paper No. 20714
Issued in November 2014
NBER Program(s):CH, ED, LS, PE

When effort is observable to peers, students may act to avoid social penalties by conforming to prevailing norms. To test for such behavior, we conducted an experiment in which 11th grade students were offered complimentary access to an online SAT preparatory course. Signup sheets differed randomly across students (within classrooms) only in the extent to which they emphasized that the decision to enroll would be kept private from classmates. In non-honors classes, the signup rate was 11 percentage points lower when decisions to enroll were public rather than private. Sign up in honors classes was unaffected. To further isolate the role of peer pressure we examine students taking the same number of honors classes. The timing of our visits to each school will find some of these students in one of their honors classes and others in one of their non-honors classes; which they happen to be sitting in when we arrive to conduct our experiment should be (and, empirically, is) uncorrelated with student characteristics. When offered the course in a non-honors class, these students were 25 percentage points less likely to sign up if the decision was public rather than private. But if they were offered the course in one of their honors classes, they were 25 percentage points more likely to sign up when the decision was public. Thus, students are highly responsive to who their peers are and what the prevailing norm is when they make decisions.

download in pdf format
   (918 K)

email paper

Supplementary materials for this paper:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20714

Published: Leonardo Bursztyn & Robert Jensen, 2015. "How Does Peer Pressure Affect Educational Investments?," The Quarterly Journal of Economics, vol 130(3), pages 1329-1367. citation courtesy of

Users who downloaded this paper also downloaded* these:
Lee, Turner, Woo, and Kim w20722 All or Nothing? The Impact of School and Classroom Gender Composition on Effort and Academic Achievement
Manoli and Turner w20718 Nudges and Learning: Evidence from Informational Interventions for Low-Income Taxpayers
Ramey and Zubairy w20719 Government Spending Multipliers in Good Times and in Bad: Evidence from U.S. Historical Data
Deryugina, Kawano, and Levitt w20713 The Economic Impact of Hurricane Katrina on its Victims: Evidence from Individual Tax Returns
Hanushek, Piopiunik, and Wiederhold w20727 The Value of Smarter Teachers: International Evidence on Teacher Cognitive Skills and Student Performance
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us