Using administrative data about the grades of Business and Economics undergraduate students from Chile, and exploiting the fact that students are randomly assigned to their first semester classes, I want to examine the existence of peer effects among students, and to study how different class compositions affect their outcomes. In 2012, the University of Chile implemented a college special admission program that targets high achieving vulnerable students from public schools, and I want to see how students that belong or don’t belong to this program interact within their own group and with the other group, and how students should be assigned to classes in order to maximize their academic outcomes.
Besides the fact that in this context the peers of the students are determined in an exogenous way, another advantage of this setup is these college students are assigned on average to 6 classes during their first semester, and they interact with different students in each of these classes, so this allows me to use instrumental variables in a similar fashion to Bramoulle et al. (2009), computing measures of the outcomes or characteristics of the peers of the peers of a student, in contrast to other type of studies where all students belong to the same peer group, as it is the case with roommate or classroom studies. Besides that, the network structure can be exploited to compute network characteristics that could be able to explain how the interactions between these groups might determine the outcomes of the students in this context.