Peer Effects and School Design: Evidence from Swiss Lower Secondary Schools

Abstract

The current paper estimates peer effects in lower secondary schools using a Swiss national survey based on international PISA 2006 questionnaires. The magnitude and nature of social interactions between classmates is a prominent argument when schooling policies such as school desegregation are dis- cussed. In Switzerland, students are not only tracked between but also within lower secondary schools. Empirical results suggest only partial evidence for efficiency gains regarding grouping policy. On the one hand, my findings report that class heterogeneity in terms of economic, social and cultural status decreases the average performance in the classroom but not in a significant way. On the other hand, pupils in the lowest parts of the ability distribution benefit most from peer effects. Finally, by analyzing equality of opportunity, my results indicate that class heterogeneity can compensate for the impact of family background on student’s performances, especially in mathematics.