Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216473 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13161
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
As children reach adolescence, peer interactions become increasingly central to their development, whereas the direct influence of parents wanes. Nevertheless, parents may continue to exert leverage by shaping their children's peer groups. We study interactions of parenting style and peer effects in a model where children's skill accumulation depends on both parental inputs and peers, and where parents can affect the peer group by restricting who their children can interact with. We estimate the model and show that it can capture empirical patterns regarding the interaction of peer characteristics, parental behavior, and skill accumulation among US high school students. We use the estimated model for policy simulations. We find that interventions (e.g., busing) that move children to a more favorable neighborhood have large effects but lose impact when they are scaled up because parents' equilibrium responses push against successful integration with the new peer group.
Subjects: 
skill acquisition
peer effects
parenting
parenting style
neighborhood effects
JEL: 
I24
J13
J24
R20
Document Type: 
Working Paper

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