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CEP/STICERD Applications Seminars

It Takes a Village: The Economics of Parenting with Neighborhood and Peer Effects

Matthias Doepke (LSE), joint with Francesco Agostinelli, Giuseppe Sorrenti and Fabrizio Zilibotti

Monday 14 November 2022 12:00 - 13:30

This event is both online and in person

32L 1.04, 1st Floor Conference Room, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH

About this event

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.

This event will take place in 32L 1.04, 1st Floor Conference Room, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.

The building is labelled 32L on the map. Enter the building via Lincoln's Inn Fields.

LSE Campus Map

This series is part of the CEP's Labour Markets programme.