Estimation of peer effect in university students' employment intentions: randomization evidence from China.

Abstract

As a key determinant of employment behavior, employment intention is easily affected by the environment, others and their subconsciousness, thus deviating from the optimal decision predicted by the classical economic model. Peers are an important environmental factor that directly affects individual behavior, but their effect on employment intentions has not been fully verified. The paper analyzes the class peer effect on university students' employment intentions using random class assignment data from a central province in China. It is found that positive peer employment behavior has a significant positive effect on university students' employment intentions, and this result remains robust after replacing the proxy variables. Further analysis of the peer effect mechanism reveals that the provision and dissemination of school employment information enhances the peer effect in employment intentions, while the help given by parents and family background weakens the peer effect. The results of the dose effect of the peer effect show that the peer effect tends to increase over time.