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Class Size And Class Heterogeneity

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  • Giacomo De Giorgi
  • Michele Pellizzari
  • William Gui Woolston

Abstract

We study how class size and class composition affect the academic and labor market performance of college students, two crucial policy questions given the secular increase in college enrollment. Our identification strategy relies on the random assignment of students to teaching classes. We find that a one standard deviation increase in class-size results in a 0.1 standard deviation deterioration of the average grade. Further, the effect is heterogeneous as it is stronger for males and lower income students. Also, the effects of class composition in terms of gender and ability appear to be inverse U-shaped. Finally, a reduction of 20 students (one standard deviation) in one's class size has a positive effect on monthly wages of about 80 Euros (115 USD) or 6% over the average.

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File URL: http://hdl.handle.net/10.1111/j.1542-4774.2012.01073.x
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Bibliographic Info

Article provided by European Economic Association in its journal Journal of the European Economic Association.

Volume (Year): 10 (2012)
Issue (Month): 4 (08)
Pages: 795-830

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Handle: RePEc:bla:jeurec:v:10:y:2012:i:4:p:795-830

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  1. Scott E. Carrell & Richard L. Fullerton & James E. West, 2009. "Does Your Cohort Matter? Measuring Peer Effects in College Achievement," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 439-464, 07.
  2. Lorraine Dearden & Javier Ferri & Costas Meghir, 2002. "The Effect Of School Quality On Educational Attainment And Wages," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 1-20, February.
  3. De Giorgi, Giacomo & Pellizzari, Michele & Redaelli, Silvia, 2007. "Be as Careful of the Books You Read as of the Company You Keep: Evidence on Peer Effects in Educational Choices," IZA Discussion Papers 2833, Institute for the Study of Labor (IZA).
  4. Renate Schubert, 1999. "Financial Decision-Making: Are Women Really More Risk-Averse?," American Economic Review, American Economic Association, vol. 89(2), pages 381-385, May.
  5. Bandiera, Oriana & Larcinese, Valentino & Rasul, Imran, 2009. "Heterogeneous Class Size Effects: New Evidence from a Panel of University Students," CEPR Discussion Papers 7512, C.E.P.R. Discussion Papers.
  6. Sloan, Frank A & Reilly, Bridget A & Schenzler, Christoph, 1995. "Effects of Tort Liability and Insurance on Heavy Drinking and Drinking and Driving," Journal of Law and Economics, University of Chicago Press, vol. 38(1), pages 49-77, April.
  7. David N. Figlio & Marianne E. Page, 2000. "School Choice and the Distributional Effects of Ability Tracking: Does Separation Increase Equality?," NBER Working Papers 8055, National Bureau of Economic Research, Inc.
  8. Duflo, Esther & Dupas, Pascaline & Kremer, Michael, 2008. "Peer Effects and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," CEPR Discussion Papers 7043, C.E.P.R. Discussion Papers.
  9. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May.
  10. Jonathan Guryan & Kory Kroft & Matthew J. Notowidigdo, 2009. "Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 34-68, October.
  11. Caroline M. Hoxby, 1998. "The Effects of Class Size and Composition on Student Achievement: New Evidence from Natural Population Variation," NBER Working Papers 6869, National Bureau of Economic Research, Inc.
  12. Paul Oyer, 2006. "Initial Labor Market Conditions and Long-Term Outcomes for Economists," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 143-160, Summer.
  13. Dobbelsteen, Simone & Levin, Jesse & Oosterbeek, Hessel, 2002. " The Causal Effect of Class Size on Scholastic Achievement: Distinguishing the Pure Class Size Effect from the Effect of Changes in Class Composition," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(1), pages 17-38, February.
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Cited by:
  1. John List & Imran Rasul, 2010. "Field experiments in labor economics," Artefactual Field Experiments 00092, The Field Experiments Website.
  2. Fu, Shihe & Viard, Brian, 2014. "Commute Costs and Labor Supply: Evidence from a Satellite Campus," MPRA Paper 53740, University Library of Munich, Germany.
  3. Stephen L. Ross, 2009. "Social Interactions within Cities: Neighborhood Environments and Peer Relationships," Working papers 2009-31, University of Connecticut, Department of Economics.
  4. De Giorgi, Giacomo & Pellizzari, Michele, 2011. "Understanding Social Interactions: Evidence from the Classroom," IZA Discussion Papers 5624, Institute for the Study of Labor (IZA).
  5. Harding, Matthew & Lamarche, Carlos, 2014. "Estimating and testing a quantile regression model with interactive effects," Journal of Econometrics, Elsevier, vol. 178(P1), pages 101-113.
  6. Michela Braga & Marco Paccagnella & Michele Pellizzari, 2011. "Evaluating students’ evaluations of professors," Working Papers 384, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  7. Ostermaier, Andreas & Beltz, Philipp & Link, Susanne, 2013. "Do university policies matter? Effects of Course Policies on Performance," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79924, Verein für Socialpolitik / German Economic Association.
  8. Feld, Jan & Zölitz, Ulf, 2014. "Understanding Peer Effects: On the Nature, Estimation and Channels of Peer Effects," Working Papers in Economics 596, University of Gothenburg, Department of Economics, revised Aug 2014.

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