@TechReport{iza:izadps:dp18623, author={Hadah, Hussain}, title={Peer Effects in Adolescent Mental Health}, year={2026}, month={May}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={18623}, url={https://www.iza.org/publications/dp18623}, abstract={This paper examines peer mental health’s influence on adolescents’ wellbeing, academic performance, and behavior. Using friends-of-friends as an instrument, I find that a one standard deviation increase in friends’ mental unwellness is associated with a 0.67 standard deviation increase in one’s own. Peers’ therapy participation significantly reduces individual mental unwellness while increasing therapy participation likelihood, highlighting positive spillover effects of interventions. The results reveal significant negative effects of peer mental unwellness on personal mental health, academic achievement, physical health, and risky behavior, confirming that adolescent mental health constitutes a social contagion.}, keywords={social network;peer effects;mental health;social contagion;instrumental variable;Add Health data set}, }