TY - JOUR AU - Hanushek,Eric A. AU - Kain,John F. AU - Markman,Jacob M. AU - Rivkin,Steven G. TI - Does Peer Ability Affect Student Achievement? JF - National Bureau of Economic Research Working Paper Series VL - No. 8502 PY - 2001 Y2 - October 2001 UR - http://www.nber.org/papers/w8502 L1 - http://www.nber.org/papers/w8502.pdf N1 - Author contact info: Eric A. Hanushek Hoover Institution Stanford University Stanford, CA 94305-6010 Tel: 650/736-0942 Fax: 650/723-1687 E-Mail: hanushek@stanford.edu John Kain Director Cecil and Ida Green Center for the Study of Scienc Mail Station GC21 P.O. Box 830688 Richardson, TX 75083-0688 Tel: 972-883-2555 E-Mail: N/A user is deceased Steven G. Rivkin Department of Economics University of Illinois at Chicago 601 South Morgan UH725 M/C144 Chicago, IL 60607 Tel: 312.413.2368 E-Mail: sgrivkin@uic.edu AB - Empirical analysis of peer effects on student achievement has been open to question because of the difficulties of separating peer effects from other confounding influences. While most econometric attention has been directed at issues of simultaneous determination of peer interactions, we argue that issues of omitted and mismeasured variables are likely to be more important. We control for the most important determinants of achievement that will confound peer estimates by removing student and school-by-grade fixed effects in addition to observable family and school characteristics. The analysis also addresses the reciprocal nature of peer interactions and the interpretation of estimates based upon models using past achievement as the measure of peer group quality. The results indicate that peer achievement has a positive effect on achievement growth. Moreover, students throughout the school test score distribution appear to benefit from higher achieving schoolmates. On the other hand, the variance in achievement appears to have no systematic effect. ER -