DP11563 Self-Control and Peer Groups: An Empirical Analysis

Author(s): Marco Battaglini, Carlos Díaz, Eleonora Patacchini
Publication Date: October 2016
Keyword(s): peer effects, Self-Control
JEL(s): C31, D71, D85, I21, Z13
Programme Areas: Labour Economics, Public Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11563

We exploit the exogenous variation in peer groups generated by high school to college transitions to study the theoretical predictions of Battaglini, Benabou and Tirole's (2005) model of self-control in peer groups. We find evidence consistent with the two key predictions of this theory regarding the relationship between an agent's expected self-control problems and the size and composition of his or her social circles: (i) students embedded in social circles have more self-control than those who are alone and their self-control is increasing in the size of their social group; (ii) students' self-control is, however, a non-monotonic hump-shaped function of the average self-control of their friends.