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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

Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, in-person seminars are open to the public.

Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.


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.

Applications (Applied Micro) Seminars are held on Mondays in term time at 12:00-13:30 in 3.05 in person.

Seminar organiser: Jörn-Steffen Pischke

For further information please contact Lubala Chibwe, either by email: l.chibwe@lse.ac.uk.

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