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The Persistent Effects of Short-Term Peer Groups on Performance : Evidence from a Natural Experiment in Higher Education

Thiemann, Petra LU (2022) In Management Science 68(2). p.1131-1148
Abstract

This paper studies the persistent effects of short-term peer exposure on long-run performance in a college setting. I exploit the random assignment of undergraduates to peer groups during a mandatory orientation week and track the students’ performance over four years (until graduation). Assignment to orientation week groups with high levels of peer ability is associated with lower performance during the first year at college and a higher probability of early dropout. These adverse effects are driven entirely by the exposure of low-ability students to high-ability peers. Beyond the first year, exposure to higher peer ability during the orientation week negatively affects selection into the college’s most popular major (business... (More)

This paper studies the persistent effects of short-term peer exposure on long-run performance in a college setting. I exploit the random assignment of undergraduates to peer groups during a mandatory orientation week and track the students’ performance over four years (until graduation). Assignment to orientation week groups with high levels of peer ability is associated with lower performance during the first year at college and a higher probability of early dropout. These adverse effects are driven entirely by the exposure of low-ability students to high-ability peers. Beyond the first year, exposure to higher peer ability during the orientation week negatively affects selection into the college’s most popular major (business administration) and final grade point average. Taken together, the findings suggest that the composition of short-term peer groups matters for individual choices and long-run performance outcomes.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
higher education, natural experiment, peer effects, performance
in
Management Science
volume
68
issue
2
pages
1131 - 1148
publisher
Informs
external identifiers
  • scopus:85132059715
ISSN
0025-1909
DOI
10.1287/mnsc.2021.3993
language
English
LU publication?
yes
id
9409b594-5b2d-438f-83aa-d81cbc0fdd51
date added to LUP
2022-08-24 16:18:41
date last changed
2022-08-25 08:56:41
@article{9409b594-5b2d-438f-83aa-d81cbc0fdd51,
  abstract     = {{<p>This paper studies the persistent effects of short-term peer exposure on long-run performance in a college setting. I exploit the random assignment of undergraduates to peer groups during a mandatory orientation week and track the students’ performance over four years (until graduation). Assignment to orientation week groups with high levels of peer ability is associated with lower performance during the first year at college and a higher probability of early dropout. These adverse effects are driven entirely by the exposure of low-ability students to high-ability peers. Beyond the first year, exposure to higher peer ability during the orientation week negatively affects selection into the college’s most popular major (business administration) and final grade point average. Taken together, the findings suggest that the composition of short-term peer groups matters for individual choices and long-run performance outcomes.</p>}},
  author       = {{Thiemann, Petra}},
  issn         = {{0025-1909}},
  keywords     = {{higher education; natural experiment; peer effects; performance}},
  language     = {{eng}},
  number       = {{2}},
  pages        = {{1131--1148}},
  publisher    = {{Informs}},
  series       = {{Management Science}},
  title        = {{The Persistent Effects of Short-Term Peer Groups on Performance : Evidence from a Natural Experiment in Higher Education}},
  url          = {{http://dx.doi.org/10.1287/mnsc.2021.3993}},
  doi          = {{10.1287/mnsc.2021.3993}},
  volume       = {{68}},
  year         = {{2022}},
}