Abstract
Little is known about the impact of peer personality on human capital formation. The paper studies the impact of peers’ persistence, a personality trait reflecting perseverance in the face of challenges and setbacks, on student achievement. Exploiting student-classroom random assignments in middle schools in China, I find that having more persistent peers improves student achievement. I identify three mechanisms: (i) an increase in students’ own persistence and self-disciplined behaviors, (ii) teachers exhibiting greater responsibility and patience, along with increased time spent on teaching preparation, and (iii) the formation of endogenous friendship networks characterized by academically successful peers and fewer disruptive peers, especially among students with similar levels of persistence.
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