Template-Type: ReDIF-Paper 1.0 Author-Name: Lukas Kiessling Author-Name-First: Lukas Author-Name-Last: Kiessling Author-Email: lkiessling@coll.mpg.de Author-Workplace-Name: Institute for Research on Collective Goods Author-Name: Jonathan Norris Author-Name-First: Jonathan Author-Name-Last: Norris Author-Email: jonathan.norris@strath.ac.uk Author-Workplace-Name: Department of Economics, University of Strathclyde Title: The long-run effects of peers on mental health Abstract: This paper studies how peers in school affect students’ mental health. Guided by a theoretical framework, we find that increasing students’ relative ranks in their cohorts by one standard deviation improves their mental health by 6% of a standard deviation conditional on own ability. These effects are more pronounced for low-ability students, persistent for at least 14 years, and carry over to economic long-run outcomes. Moreover, we document a strong asymmetry: Students who receive negative rather than positive shocks react more strongly. Our findings therefore provide evidence on how the school environment can have long-lasting consequences for the well-being of individuals. Length: 70 pages Creation-Date: 2020-06 Revision-Date: Publication-Status: Published File-URL: https://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/20-06_-_Jonathan_Norris_and_Lukas_Kiessling.pdf File-Format: Application/pdf Number: 2006 Classification-JEL: I21, I14, J24 Keywords: Peer Effects, Mental Health, Depression, Rank Effects Handle: RePEc:str:wpaper:2006