Patrick Bayer, Randi Hjalmarsson, and David Pozen apply this logic to their analysis of juvenile detention centers. They show that future criminal behavior of detention center residents depends, at least somewhat, on the criminal background of the other detention center residents. From their abstract:
We find strong evidence of peer effects for burglary, petty larceny, felony and misdemeanor drug offenses, aggravated assault, and felony sex offenses; the influence of peers primarily affects individuals who already have some experience in a particular crime category.If you have access to NBER, download there paper here. Otherwise, google scholar.