Peer and parental influence in the development of cognitive skills and predispostion to risky behaviour

Balsa, Ana Inés; Gandelman, Néstor; Roldán, Flavia

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URI

https://hdl.handle.net/20.500.12806/1354

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Author

Balsa, Ana Inés ; Gandelman, Néstor ; Roldán, Flavia

Editor

Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía, Departamento de Economía

Date

2017

Extensión

41 p.

Abstract

This paper analyzes the strategic interactions between peers and parents in the development of adolescent’s cognitive skills and non-cognitive skills, as proxied by the predisposition to use substances. We estimate a technology of skill formation that identifies peer effects on the basis of quasi-random assignment of students across classes, time varying data, and the use of instrumental variables. We find that both peer and parental socialization efforts have a positive influence over adolescents’ academic skills, and that these effects are complementary: as peers get better academically, parents invest more. We do not find, however, linear-in-means peer or parental effects on the predisposition to use substances.