Abstract
This paper investigates whether the presence of low-achieving classmates affects the noncognitive outcomes of regular students in junior high school. Exploiting random assignments of teachers and students to classes, we show that having classmates who had ever repeated a grade in primary school improves students' mental health and social skills, and the positive peer effects are concentrated among students with a longer duration of peer exposure and students from low socioeconomic backgrounds. Mechanism analysis reveals that the improved teacher–student and student–student interactions contribute to the enhancement of noncognitive outcomes.
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