Friend effects and racial disparities in academic achievement

Abstract

Racial disparities in achievement are a persistent fact of the US educational system. An often cited but rarely directly studied explanation for these disparities is that adolescents from different racial and ethnic backgrounds are exposed to different peers and have different friends. In this article I identify the impact of friends on racial and ethnic achievement disparities. Using data from Add Health and an instrumental variable approach, I show that the achievement characteristics of youths' friends drive friend effects; adolescents with friends with higher grades are more likely to increase their grades compared to those with lower-achieving friends. Although these effects do not differ across race/ethnicity, given differences in friendship patterns, if black and Latino adolescents had friends with the achievement characteristics of white students, the GPA gap would be 17 to 19 percent smaller. Although modest, this effect represents an important and often overlooked source of difference among black and Latino youth.