@TechReport{iza:izadps:dp8695,
            	author={Chakraborty, Tanika and Nottmeyer, Olga and Schüller, Simone and Zimmermann, Klaus F.},
            	title={Beyond the Average: Peer Heterogeneity and Intergenerational Transmission of Education},
            	year={2014},
	month={Dec},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={8695},
            	url={https://www.iza.org/index.php/publications/dp8695},
	abstract={Estimating the effect of 'ethnic capital' on human capital investment decisions is complicated by the endogeneity of location choice of immigrants and the reflection problem. We exploit a rare immigrant settlement policy in Germany to identify the causal impact of parental peer-heterogeneity on the educational outcomes of their children. To identify the direction of peer effect we restrict to no-child-adult-peers who completed their education much before the children in our sample of interest.
We find that children of low-educated parents benefit significantly from the presence of high-educated neighbors, with more pronounced effects in more polarized neighborhoods and significant gender heterogeneity. In contrast, we do not find any negative influence coming from the low-educated neighbors. Our estimates are robust to a range of flexible peer definitions. Overall, the findings suggest an increase in parental aspirations as the possible mechanism rather than a direct child-to-child peer effect.},
	keywords={policy experiment;peer effects;immigrant;Germany;ethnic capital;education},
            }