%0 Report
        %A Giorgi, Giacomo De
%A Pellizzari, Michele
%A Redaelli, Silvia
        %T Be as Careful of the Books You Read as of the Company You Keep: Evidence on Peer Effects in Educational Choices
        %D 2007
        %8 2007 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 2833
        %U https://www.iza.org/publications/dp2833
        %X In this paper we investigate whether peers’ behavior influences the choice of college major. Using a unique dataset of students at Bocconi University and exploiting the organization of teaching at this institution, we are able to identify the endogenous effect of peers on such decision through a novel identification strategy which solves the common econometric problems of studies of social interactions. Results show that, indeed, one is more likely to choose a major when many of her peers make the same choice. We estimate that, when it diverts students from majors in which they seem to have a relative ability advantage, this effect leads to lower average grades and graduation mark, a penalty that could cost up to 1,117 USD a year in the labor market.
        %K social interaction
%K education
%K peer effects
%K reflection