A Proposal of Spatial Measurement of Peer Effect through Socioeconomic Indices and Unsatisfied Basic Needs

This paper investigates peer effects in the academic achievement of Costa Rican students. Two measures are used: (1) a measure schools’ average socioeconomic status and (2) unsatisfied basic needs at district level. The estimation three-level hierarchical model allows us to deal with selection bias unobserved heterogeneity. Results show that effect, both school levels, positively significantly correlates achievement. An increase one standard deviation index has same effect on as an additional year schooling; two years if improvement occurs needs. These results robust for mathematics, reading science. from quantile regression reveal students high take greater advantages studying schools higher (mathematics reading). Meanwhile, low most affected by poorer districts science). strong feedback between educational social inequity constitute good example how poverty traps can persist developing countries.