Research Paper on A Plan for Spatial Peer Effect Measurement Using Socioeconomic Indices and Unmet Basic Needs

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Title: A Plan for Spatial Peer Effect Measurement Using Socioeconomic Indices and Unmet Basic Needs

Abstract: This essay examines the role that peer pressure plays in Costa Rican students’ academic success. A school’s average socioeconomic status and unmet basic needs at the district level are used as the two metrics for peer effects. Selection bias and unobserved heterogeneity can be handled by the estimation of a three-level hierarchical model. Results indicate a positive and significant correlation between academic achievement and the socioeconomic peer effect at both the school and district levels. Academic achievement is impacted by changes in the socioeconomic index by an increase of one standard deviation, or two years if the improvement is in the index of unmet basic needs. For reading mathematics and science, these findings are solid. Quantile regression findings show that students with high academic achievement benefit more from attending institutions with higher socioeconomic status (mathematics and reading). Conversely, studying in less affluent areas has the biggest negative effects on students with low academic achievement (mathematics and science). These findings demonstrate the close connection between social and educational inequality and serve as an excellent illustration of how poverty traps can endure in developing nations.

Keywords: peer effect; unsatisfied basic needs; academic achievement; poverty; socioeconomic status; Costa Rica; PISA

Paper Quality: SCOPUS / Web of Science Level Research Paper

Subject: Economics

Writer Experience: 20+ Years

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