Economics of Education: Peer Effects and Mindset

Authors

May Linn Auestad

Synopsis

In a world where technology is becoming ever more important, children’s best chance to thrive in school, and later, succeed in the labor market is by striving towards exploiting their full potential and acquire an applicable education. Evidence suggests that the future labor market will require more formal education, especially within science, technology, engineering and math, commonly referred to as the STEM fields (Freeman & Aspray, 1999; Petersen & Hyde, 2014). Additionally, mastering only the technical aspects of a job will no longer be sufficient; social and emotional skills will be essential as computers and robots take over routine tasks (Deming, 2017; Edin et al., 2017; Heckman et al., 2006; Heckman & Kautz, 2012; Kautz et al., 2014; OECD Publishing, 2013).

 Furthermore, given that the advances in technology mean that the labor market is constantly changing, those who are able to practice lifelong learning are bound to experience some benefits. An obvious advantage in this regard is believing that intelligence and talents can be developed and changed through effort, perseverance, hard work and by using different strategies, commonly referred to as holding a growth mindset (Dweck, 2006; Mueller & Dweck, 1998; Yeager & Dweck, 2012).

 Outside of the home, schools, and especially classrooms, are perhaps the most important arena for children developing the competencies they will need to flourish (Hamre & Pianta, 2005; Howes, Hamilton, & Matheson, 1994). The learning environment across or perhaps even within schools, however, can be rather different as there are several components that affect what happens in the classroom (Chetty et al., 2011; Rockoff, 2004). In this thesis I examine important aspects of two such components; other students, commonly referred to as peers, and teachers. My goal is to contribute to understanding how we can help more children thrive in school, and consequently achieve more of their potential, using existing resources.

Author Biography

May Linn Auestad

Research Fellow
Department of Economics and Finance
University of Stavanger
may.l.auestad@uis.no

 

References

Ainscow, M., César, M. (2006). Inclusive education ten years after Salamanca: Setting the agenda. European Journal of Psychology of Education, 21 (3), 231-238.

https://doi.org/10.1007/BF03173412

Andersen, S. C., & Nielsen, H. S. (2016). Reading intervention with a growth mindset approach improves children's skills. Proceedings of the National Academy of Sciences, 113 (43), 12111-12113.

https://doi.org/10.1073/pnas.1607946113

Angrist, J. D., & Krueger, A. B. (1999). Empirical Strategies in Labor Economics. In Handbook of Labor Economics (Vol. 3, pp. 1277-1366). The Netherlands: North-Holland, an imprint of Elsevier.

https://doi.org/10.1016/S1573-4463(99)03004-7

Angrist, J. D., & Pischke, J. S. (2008). Mostly Harmless Econometrics: An Empiricist's Companion. Princeton: Princeton University Press.

https://doi.org/10.2307/j.ctvcm4j72

Aronson, J., Fried, C. B., & Good, C. (2002). Reducing the Effects of Stereotype Threat on African American College Students by Shaping Theories of Intelligence. Journal of Experimental Social Psychology, 38(2), 113-125.

https://doi.org/10.1006/jesp.2001.1491

Beilock, S. L., Gunderson, E. A., Ramirez, G., & Levine, S. C. (2010). Female teachers' math anxiety affects girls' math achievement. Proceedings of the National Academy of Sciences, 107 (5), 1860-1863.

https://doi.org/10.1073/pnas.0910967107

Bettinger, E. P., Ludvigsen, S., Rege, M., Solli, I. F., & Yeager, D. (2018). Increasing per- severance in math: Evidence from a field experiment in Norway. Journal of Economic Behavior & Organization, 146, 1-13.

https://doi.org/10.1016/j.jebo.2017.11.032

Blackwell, L. S., Trzesniewski, K. H., & Dweck, C. S. (2007). Implicit Theories of Intelligence Predict Achievement Across an Adolescent Transition: A Longitudinal Study and an Intervention. Child Development, 78 (1), 246-263.

https://doi.org/10.1111/j.1467-8624.2007.00995.x

Brooks, R., & Goldstein, S. (2008). The Mindset of Teachers Capable of Fostering Resilience in Students. Canadian Journal of School Psychology, 23 (1), 114-126.

https://doi.org/10.1177/0829573508316597

Burnette, J. L., O'Boyle, E. H., VanEpps, E. M., Pollack, J. M., & Finkel, E. J. (2013). Mind-sets matter: A meta-analytic review of implicit theories and self-regulation. Psychological Bulletin, 139 (3), 633-701.

https://doi.org/10.1037/a0029531

Carrell, S. E., Hoekstra, M., & Kuka, E. (2018). The long-run effects of disruptive peers. American Economic Review, 108 (11), 3377-3413.

https://doi.org/10.1257/aer.20160763

Carrell, S.E., Hoekstra, M.L. (2010). Externalities in the classroom: how children exposed to domestic violence affect everyone's kids. American Economic Journal: Applied Economics, 2 (1), 211-28.

https://doi.org/10.1257/app.2.1.211

Carrell, S. E., Page, M. E., & Vest, J. E. (2010). Sex and Science: How Professor Gender Perpetuates the Gender Gap. The Quarterly Journal of Economics, 125 (3), 1101-1144.

https://doi.org/10.1162/qjec.2010.125.3.1101

Cartwright, N. (2012). RCTs, evidence, and predicting policy effectiveness. Oxford: Oxford University Press. Chetty, R., Friedman, J. N., Hilger, N., Saez, E., Schanzenbach, D. W.,

https://doi.org/10.1093/oxfordhb/9780195392753.013.0013

& Yagan, D. (2011). How Does your Kindergarten Classroom Affect your Earnings? Evidence from Project STAR. Quarterly Journal of Economics, 126 (4), 1593-1660.

https://doi.org/10.1093/qje/qjr041

Coleman, J. S., Campbell, E. Q., Hobson, C. J., McPartland, J., Mood, A. M., Weinfeld, F. D., & York, R. L. (1966). Equality of Educational Opportunity. Washington, D.C.: U.S. Government Printing Office.

Deming, D. J. (2017). The Growing Importance of Social Skills in the Labor Market. The Quarterly Journal of Economics, 132 (4), 1393-1640.

https://doi.org/10.1093/qje/qjx022

Dweck, C. S. (2006). Mindset: The New Psychology of Success. New York: The Random House Publishing Group.

Dweck, C. S. (2009). Who Will the 21st-Century Learners Be? Knowledge Quest, 38 (2), 8-9.

Dweck, C. S., & Leggett, E. L. (1988). A social-cognitive approach to motivation and personality. Psychological Review, 95 (2), 236-273.

https://doi.org/10.1037/0033-295X.95.2.256

Edin, P. A., Fredriksson, P., Nybom, M., & Ockert, B. (2017). The Rising Return to Non- cognitive Skill. IZA Discussion Paper No. 10914.

European Agency for Development in Special Needs Education (2013). Organisation of provision to support inclusive education. Literature review. Odense, Denmark. Retrieved from https://www.europeanagency.org/sites/default/files/organisation-of-provision-to- supportinclusive-education-2013-literature-review_Organisation-of-ProvisionLiterature-Review.pdf

Freeman, P., & Aspray, V. (1999). The Supply of Information Technology Workers in the United States (Tech. Rep.). ERIC.

Good, C., Aronson, J., & Inzlicht, M. (2003). Improving adolescents' standardized test performance: An intervention to reduce the effects of tereotype threat. Journal of Applied Developmental Psychology, 24 (6), 643-662.

https://doi.org/10.1016/j.appdev.2003.09.002

Good, C., Rattan, A., & Dweck, C. S. (2012). Why do women opt out? Sense of belonging and women's representation in mathematics. Journal of Personality and Social Psychology, 102 (4), 700-717.

https://doi.org/10.1037/a0026659

Haimovitz, K., & Dweck, C. S. (2017). The Origins of Children's Growth and Fixed Mindsets: New Research and a New Proposal. Child Development, 88 (6), 1849-1839.

https://doi.org/10.1111/cdev.12955

Hamre, B. K., & Pianta, R. C. (2005). Can Instructional and Emotional Support in the First-grade Classroom Make a Difference for Children at Risk of School Failure? Child Development, 76 (5), 949-967.

https://doi.org/10.1111/j.1467-8624.2005.00889.x

Hanushek, E. A. (2020). Education production functions. In The Economics of Education (Second Edition) (pp. 161-170). US/UK: Academic Press, an imprint of Elsevier.

https://doi.org/10.1016/B978-0-12-815391-8.00013-6

Hanushek, E. A., Kain, J. F., & Rivkin, S. G. (2002). Inferring Program Effects for Special Populations: Does Special Education Raise Achievement for Students with Disabilities? Review of Economics and Statistics, 84 (4), 384-399.

https://doi.org/10.1162/003465302760556431

Heckman, J. J. (2000). Policies to foster human capital. Research in Economics, 54 (1), 3-56.

https://doi.org/10.1006/reec.1999.0225

Heckman, J. J. (2005). The Scientific Model of Causality. Sociological Methodology, 35 (1), 1-97.

https://doi.org/10.1111/j.0081-1750.2006.00164.x

Heckman, J. J. (2008). Econometric Causality. International Statistical Review, 76 (1), 1-27.

https://doi.org/10.1111/j.1751-5823.2007.00024.x

Heckman, J. J., & Kautz, T. (2012). Hard evidence on soft skills. Labour Economics, 19 (4), 431-464.

https://doi.org/10.3386/w18121

Heckman, J. J., Stixrud, J., & Urzua, S. (2006). The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior. Journal of Labor Economics, 24 (3), 411-482.

https://doi.org/10.1086/504455

Heggart, K. (2017). Early childhood student teachers: It pays to belong to the IEU. Newsmonth, 37 (7).

Hoover, D. K. (2008). Causality in Economics and Econometrics. In Palgrave Macmillan (eds) The New Palgrave Dictionary of Economics. London: Palgrave Macmillan.

https://doi.org/10.1057/978-1-349-95121-5_2227-1

Howes, C., Hamilton, C. E., & Matheson, C. C. (1994). Children's Relationships with Peers: Differential Associations with Aspects of the 7HDFKHUဨ&KLOG5HODWLRQVKLS Child Development, 65 (1), 253-263. oxby, C. M., & Weingarth, G. (2005). Taking race out of the equation: School reassignment and the structure of peer effects. Unpublished manuscript.

https://doi.org/10.2307/1131379

Hyde, J. S., Lindberg, S. M., Linn, M. C., Ellis, A. B., & Williams, C. C. (2008). Gender Similarities Characterize Math Performance. Science, 321 (5888), 494-495.

https://doi.org/10.1126/science.1160364

Imberman, S. A., Kugler, A. D., & Sacerdote, B. I. (2012). Katrina's Children: Evidence on the Structure of Peer Effects from Hurricane Evacuees. American Economic Review, 102 (3), 2048-2082.

https://doi.org/10.1257/aer.102.5.2048

Kahn, S., & Ginther, D. (2017). Women and STEM. NBER Working Paper No. 23525.

https://doi.org/10.3386/w23525

Kamins, M. L., & Dweck, C. S. (1999). Person versus process praise and criticism: Implications for contingent self-worth and coping. Developmental Psychology, 35 (3), 833-847.

https://doi.org/10.1037/0012-1649.35.3.835

Kane, R. (2005). A contemporary introduction to free will. Oxford: Oxford University Press.

Kane, T. J., Taylor, E. S., Tyler, J. H., & Wooten, A. L. (2011). Identifying Effective Classroom Practices Using Student Achievement Data. Journal of Human Resources, 46 (3), 387-613.

https://doi.org/10.3368/jhr.46.3.587

Kautz, T., Heckman, J. J., Diris, R., Ter Weel, B., & Borghans, L. (2014). Fostering and Measuring Skills: Improving Cognitive and NonCognitive Skills to Promote Lifetime Success. NBER Working Paper No. 20749.

https://doi.org/10.3386/w20749

Kristoffersen, J. H. G., Krægpøth, M. V., Nielsen, H. S., & Simonsen, M. (2015). Disruptive school peers and student outcomes. Economics of Education Review, 45, 1-13.

https://doi.org/10.1016/j.econedurev.2015.01.004

Lindberg, S. M., Hyde, J. S., Petersen, J. L., & Linn, M. C. (2010). New trends in gender and mathematics performance: A meta-analysis. Psychological Bulletin, 136 (6), 1123-1135.

https://doi.org/10.1037/a0021276

Ma, X., & Johnson, V. (2008). Mathematics as the critical filter: Curricular effects on gendered career choices. In H. M. G. Watt & J. S. Eccles (Eds.), Gender and occupational outcomes: Longitudinal assessments of individual, social, and cultural influences (pp. 33-83). Washington, DC: American Psychological Association.

https://doi.org/10.1037/11706-002

Markussen, E., & Gloppen, S. K. (2012). Påbygg - et gode eller en nødløsning? En studie av påbygging til generell studiekompetanse i Østfold, Akershus, Buskerud, Rogaland og Nord-Trøndelag skoleåret 2010-2011 (Tech. Rep.). Retrieved from https://nifu.brage.unit.no/nifuxmlui/bitstream/handle/11250/280848/NIFUrapport2012- 2.pdf?sequence=1&isAllowed=y

Ministry of Education and Research. (1998). Lov 17. juli 1998 om grunnskolen og den vidaregåande opplæringa (the Education Act). Retrieved from https://lovdata.no/dokument/NL/lov/1998-07-17-61 (Opplæringslova)

Ministry of Education and Research. (2005). Lov 13. desember 2005 om universiteter og høyskoler (Act relating to universities and university colleges). Retrieved from https://lovdata.no/dokument/NL/lov/2005-04- 01-15 (Universitets- og høyskoleloven)

Ministry of Education and Research. (2017). Veiledning om organisering av elevene. Online. Retrieved from www.regjeringen.no/contentassets/f94154aa3d2b491ba1ac2f7f658cb01 9/veiledning-om-organisering-av-elevene_oppdatert-april-2017.pdf(Accessed November 2018)

Mueller, C. M., & Dweck, C. S. (1998). Praise for Intelligence Can Undermine Children's Motivation and Performance. Journal of Personality and Social Psychology, 75 (1), 33-32.

https://doi.org/10.1037/0022-3514.75.1.33

Neal, D. A. (2018). Information, Incentives, and Education Policy. Cambridge: Harvard University Press.

https://doi.org/10.4159/9780674984868

Nix, S., Perez-Felkner, L., & Thomas, K. (2015). Perceived mathematical ability under challenge: a longitudinal perspective on sex segregation among STEM degree fields. Frontiers in Psychology, 6, Article 530.

https://doi.org/10.3389/fpsyg.2015.00530

OECD Publishing. (2015). Skills for Social Progress: The Power of Social and Emotional Skills. Paris: OECD Publishing. (OECD Skills Studies)

Ogden, T. (2014). Special needs education in Norway - the past, present, and future of the field. Special Education Past, Present, and Future: Perspectives from the Field (Advances in Learning and Behavioral Disabilities, Vol. 27), Emerald Group Publishing Limited, pp. 213-238.

https://doi.org/10.1108/S0735-004X20140000027012

Oxford Dictionary. (2020a). Correlation. Retrieved from https://www.lexico.com/en/definition/correlation (Accessed March 2020)

Oxford Dictionary. (2020b). Causality. Retrieved from https://www.lexico.com/en/definition/causality (Accessed March 2020) Paunesku, D., Walton, G. M., Romero, C., Smith, E. N., Yeager, D. S.,

& Dweck, C. S. (2015). Mind-Set Interventions Are a Scalable Treatment for Academic Underachievement. Psychological Science, 26 (6), 784-793.

https://doi.org/10.1177/0956797615571017

Pearl, J., & Mackenzie, D. (2018). The Book of Why: The New Science of Cause and Effect. UK: Penguin Books.

Perez-Felkner, L., Nix, S., & Thomas, K. (2017). Gendered Pathways: How Mathematics Ability Beliefs Shape Secondary and Postsecondary Course and Degree Field Choices. Frontiers in Psychology, 8, Article 386.

https://doi.org/10.3389/fpsyg.2017.00386

Petersen, J. L., & Hyde, J. S. (2014). Gender-Related Academic and Occupational Interests and Goals. In Advances in Child Development and Behavior (Vol. 47, pp. 43-76). US/UK: Academic Press, an imprint of Elsevier.

https://doi.org/10.1016/bs.acdb.2014.04.004

Petersen, J. L., & Hyde, J. S. (2017). Trajectories of self-perceived math ability, utility value and interest across middle school as predictors of high school math performance. Educational Psychology, 37 (4), 438- 456.

https://doi.org/10.1080/01443410.2015.1076765

Psacharopoulos, G. (1987). Economics of Education: Research and Studies. UK: Pergamon Press.

Rattan, A., Savani, K., Chugh, D., & Dweck, C. S. (2015). Leveraging Mindsets to Pro- mote Academic Achievement: Policy Recommendations. Perspectives on Psychological Science, 10 (6), 721- 726.

https://doi.org/10.1177/1745691615599383

Reiss, J. (2013). Philosophy of Economics: A Contemporary Introduction. US: Routledge.

https://doi.org/10.4324/9780203559062

Riegle-Crumb, C., Farkas, G., & Muller, C. (2006). The Role of Gender and Friendship in Advanced Course Taking. Sociology of Education, 79 (3), 206-228.

https://doi.org/10.1177/003804070607900302

Rockoff, J. E. (2004). The Impact of Individual Teachers on Student Achievement: Evidence from Panel Data. American Economic Review, 94 (2), 247-252.

https://doi.org/10.1257/0002828041302244

Rubin, Donald B. (1974). Estimating causal effects of treatments in randomized and nonrandomized studies. Journal of Educational Psychology, 66 (5), 688-701.

https://doi.org/10.1037/h0037350

Rubin, Donald B. (1977). Assignment to treatment group on the basis of a covariate. Journal of Educational Statistics, 2 (1), 1-26.

https://doi.org/10.3102/10769986002001001

Ruijs, N. M. (2017). The impact of special needs students on classmate performance. Economics of Education Review, 58, 13-31.

https://doi.org/10.1016/j.econedurev.2017.03.002

Ruijs, N. M., Van der Veen, I., & Peetsma, T. T. (2010). Inclusive education and students without special educational needs. Educational Research, 52 (4), 331-390.

https://doi.org/10.1080/00131881.2010.524749

Sacerdote, B. (2011). Peer Effects in Education: How Might They Work, How Big Are They and How Much Do We Know Thus Far? In Handbook of the Economics of Education (Vol. 3, pp. 249-277). The Netherlands: North-Holland, an imprint of Elsevier.

https://doi.org/10.1016/B978-0-444-53429-3.00004-1

Samuelsson, M., & Samuelsson, J. (2016). Gender differences in boys' and girls' perception of teaching and learning mathematics. Open Review of Educational Research, 3 (1), 18-34.

https://doi.org/10.1080/23265507.2015.1127770

Sells, L. V. (1980). Mathematics: The Invisible Filter. Engineering Education, 70 (4), 340-341.

Siegel, E. (2019). Why Ice Cream Is Linked to Shark Attacks - Correlation/Causation - The Dr. Data Show. Retrieved from https://www.youtube.com/watch?v=AOB6vcwFL-I (Accessed March 2020)

Statistics Norway. (2017). Elevar i grunnskolen. Retrieved from https://www.ssb.no/utdanning/statistikker/utgrs (Table 4 accessed November 2018)

Walton, G. M., & Yeager, D. S. (in press). Seed and Soil: Psychological Affordances in Contexts Help to Explain Where Wise Interventions Succeed or Fail. Current Directions in Psychological Science.

Yeager, D. S., & Dweck, C. S. (2012). Mindsets That Promote Resilience: When Students Believe That Personal Characteristics Can Be Developed. Educational Psychologist, 47 (4), 302-314.

https://doi.org/10.1080/00461520.2012.722805

Yeager, D. S., Hanselman, P., Walton, G. M., Murray, J. S., Crosnoe, R., Muller, C., ... others (2019). A national experiment reveals where a growth mindset improves achievement. Nature, 573 (7774), 364-369.

https://doi.org/10.1038/s41586-019-1466-y

Yeager, D. S., Johnson, R., Spitzer, B. J., Trzesniewski, K. H., Powers, J., & Dweck, C. S. (2014). The far-reaching effects of believing people can change: Implicit theories of personality shape stress, health, and achievement during adolescence. Journal of personality and social psychology, 106 (6), 867-884.

https://doi.org/10.1037/a0036335

Yeager, D. S., Romero, C., Paunesku, D., Hulleman, C. S., Schneider, B., Hinojosa, C., ... others (2016). Using design thinking to improve psychological interventions: The case of the growth mindset during the transition to high school. Journal of Educational Psychology, 108 (3), 374-391.

https://doi.org/10.1037/edu0000098

Yeager, D. S., Walton, G. M., Brady, S. T., Akcinar, E. N., Paunesku, D., Keane, L., ... others (2016). Teaching a lay theory before college narrows achievement gaps at scale. Proceedings of the National Academy of Sciences, 113 (24), 3341-3348.

https://doi.org/10.1073/pnas.1524360113

Cover for Economics of Education: Peer Effects and Mindset
Published
August 24, 2020

Details about this monograph

Physical Dimensions