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Peer Effects in Education

Paper Session

Saturday, Jan. 3, 2026 10:15 AM - 12:15 PM (EST)

Philadelphia Convention Center, 107-AB
Hosted By: American Economic Association
  • Chair: Seth D. Zimmerman, Yale University

The Peer Effects of Grade Retention

NaYoung Hwang
,
University of New Hampshire
Cory Koedel
,
University of Missouri

Abstract

We study the peer effects of grade retention in the context of Indiana’s statewide third-grade retention policy. When a retention occurs, it changes the peer group for two cohorts: rising fourth graders who lose a peer and rising third graders who gain a peer. We identify peer effects in both cohorts by leveraging plausibly exogenous variation in cohort-level retention rates caused by a discontinuity in the rule that determines which students are retained. We find that when a student is retained, rising fourth graders who lose the student as a peer are less likely to have a disciplinary incident. However, the effect fades out after one year, and there is not consistent evidence of peer effects on other outcomes for promoted students. For rising third graders who gain the retained student as a peer, we find no evidence of peer effects. We conclude that the total peer effects of grade retention are limited.

Tracking to Retain Higher-Income Students: Evidence from the Addition of Advanced Courses

Farah Mallah
,
Harvard University

Abstract

Public schools may add academic tracks to attract or retain upper-income and higher-achieving students. However, tracking may also exacerbate sorting by student income and test scores within schools. I exploit variation in the timing of an Advanced Placement (AP) course addition within specific school subjects and find that the introduction of an AP course does not reduce lower-income students' exposure to upper-income classmates; if anything, it increases their exposure. This increase is driven by a rise in the overall share of upper-income students at the school following the addition of an AP course, offsetting increases in sorting by income. These findings provide new insights into how tracked courses can influence school environments, connecting the school choice and tracking literature, and contributing to the broader understanding of the equity implications of advanced courses.

Being Discriminated Against, Now and Into the Future: Lingering Effect of School Bully Victimization

Satabdi Adhikary
,
Independent Researcher
Taul Cheong
,
Korean Institute of Criminology and Justice

Abstract

In the United States, one in five students aged 12-18 reports experiencing bullying during their school years, as indicated by the School Crime Supplement to the National Crime Victimization Survey. While there is significant research on interventions, factors contributing to bullying, and its long-term educational and financial consequences, research on perceived discrimination resulting from school bullying remains underexplored.
This study aims to provide valuable insights into how early adversities, such as bullying, might shape adult perceptions of discrimination, potentially impacting economic outcomes and health disparities. Utilizing a large longitudinal US data, this research examines the hypothesis that school bully victimization increases perceived feelings of being discriminated against in society during adulthood, while controlling for potential confounding variables. This work seeks to extend research on early challenges, specifically bully victimization, with the goal to mitigate their long-term adverse effects on economic and health outcomes. Estimates indicate that early childhood bully victimization, not adolescent bully victimization, has long-term impact on self-perceived discrimination. Estimates indicate an effect of 5% - 10% on adulthood perception of discrimination. Results vary by gender and race.

Learning by Doing (Together): Collaboration and Teacher Skill Formation

John Fallon
,
Boston University

Abstract

Research shows that teachers improve early in their careers, but growth often stagnates by mid-career. While much is known about these trends, less is understood about how to enhance early-career development or sustain improvement later. One possible factor is co-teaching, a practice where two teachers, typically a general and a special education teacher, collaborate in the same classroom. Prior research has largely focused on student outcomes, but co-teaching may also shape teacher development by fostering peer learning. Using administrative data from Indiana (2012–2021), we examine who is assigned to co-teaching, when in their careers it occurs, and how it affects future classroom assignments and teaching performance. Our findings indicate that teachers are more likely to be assigned to co-teaching early in their careers, particularly special education teachers, and that these assignments often lead to shifts in student composition, with general education teachers later teaching more special education students and special education teachers moving into more inclusive settings. While the overall effect of co-teaching on teacher development is not significant without additional controls, we find that general education teachers paired with experienced special education teachers see improvements in their students’ test scores in subsequent years, with gains of approximately 5% of a standard deviation. These benefits are most pronounced when co-teaching occurs within the first two years of a teacher’s career. Our study provides new evidence that co-teaching influences teacher development beyond the immediate classroom setting, suggesting that pairing novice general education teachers with experienced special education teachers can serve as an effective professional development strategy. These insights have important implications for teacher training, assignment policies, and efforts to sustain teacher growth over time.

Discussant(s)
Andrés Barrios Fernández
,
Universidad de los Andes
Seth Gershenson
,
American University
Michael Briskin
,
Boston University
Danielle Graves Williamson
,
Boston University
JEL Classifications
  • I2 - Education and Research Institutions
  • J0 - General