Informal social interactions, academic achievement and behavior: Evidence from peers on the school bus

Abstract We study the effects of informal social interactions on academic achievement and behaviour using idiosyncratic variation in peer groups stemming from changes in bus routes across elementary, middle and high school. Our results suggest that student interactions outside the classroom—especially in adolescence—may be an important factor in the education production function for both academic and, particularly, behavioural skills. The effects of interactions on the bus are also related to neighbourhood measures—suggesting that one way that interactions on the bus may matter is by amplifying interactions in the neighbourhood.