Giorgio Brunello (University of Padova)
"The Long Term Payoffs of Having Privileged Peers. Evidence from Siblings in School"
By comparing siblings attending the same school at different points of time, we estimate the effects of schoolmates’ average parental education on lifetime earnings and other medium and long-term outcomes and investigate whether these effects vary with individual parental education.
We find that exposure to privileged peers increases lifetime earnings and the probability of completing tertiary education. These effects are mainly concentrated among “disadvantaged” students. Lifetime earnings increase also with the dispersion of peers’ average parental education.
These results suggest that school de-segregation policies can produce long-term benefits. The size of the estimated effects, however, is small.