TY  - JOUR
AB  - We consider the case in which the number of seats in a program is limited, such as a job training program or a supplemental tutoring program, and explore the implications that peer effects have for which individuals should be assigned to the limited seats. In the frequently-studied case in which all applicants are assigned to a group, the average outcome is not changed by shuffling the group assignments if the peer effect is linear in the average composition of peers. However, when there are fewer seats than applicants, the presence of linear-in-means peer effects can dramatically influence the optimal choice of who gets to participate. We illustrate how peer effects impact optimal seat assignment, first under a general social planner utility function and then from both an efficiency and an equity perspective. We next use data from a recent job training RCT to provide the first evidence of large peer effects in the context of job training for disadvantaged adults. Finally, we combine the two results to show that the program's effectiveness varies greatly depending on whether the assignment choices account for or ignore peer effects. 
AU  - Opper, Matthew D. Baird
John Engberg
Isaac M.
DA  - March 2021
DO  - 10.26300/9pwe-xv15
PY  - 2021
ST  - Optimal Allocation of Seats in the Presence of Peer Effects: Evidence from a Job Training Program
T2  - EdWorkingPapers.com
TI  - Optimal Allocation of Seats in the Presence of Peer Effects: Evidence from a Job Training Program
UR  - https://www.edworkingpapers.com/ai21-373
ID  - 347
ER  -