We study the long-run effects of income inequality within adolescent peer compositions in schools. We propose a theoretical framework based on reference dependence where inequality in peer groups can generate aspiration gaps. Guided by predictions from this framework we find that an increase in...

We study the long-run effects of income inequality within adolescent peer compositions in schools. We propose a theoretical framework based on reference dependence where inequality in peer groups can generate aspiration gaps. Guided by predictions from this framework we find that an increase in...

In this paper, we study how classmate gender composition matters for students in Ethiopia. We base our results on a unique survey of students across classrooms and schools and among those randomly assigned to class. We find a strong asymmetry: males do not and females do benefit from exposure to...

In this paper, we study how classmate gender composition matters for students in Ethiopia. We base our results on a unique survey of students across classrooms and schools and among those randomly assigned to class. We find a strong asymmetry: males do not and females do benefit from exposure to...

This paper studies how peers in school affect students' mental health. Guided by a theoretical framework, we find that increasing students' relative ranks in their cohorts by one standard deviation improves their mental health by 6% of a standard deviation conditional on own ability. These...