TY  - RPRT
        AU  - Giorgi, Giacomo De
AU  - Pellizzari, Michele
AU  - Redaelli, Silvia
        TI  - Be as Careful of the Books You Read as of the Company You Keep: Evidence on Peer Effects in Educational Choices
        PY  - 2007/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2833
        UR  - https://www.iza.org/publications/dp2833
        AB  - 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.
        KW  - social interaction
KW  - education
KW  - peer effects
KW  - reflection
        ER  -