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Class Size, Education, and Wages

Author

Listed:
  • Christian Dustmann

    (University College London and Institute for Fiscal Studies)

  • Najma Rajah

    (Frontier Economics, London)

  • Arthur van Soest

    (Tilburg University)

Abstract

We use micro data for England and Wales to examine the effects of class size on the decision to stay on in full time schooling at 16 and on wages later in life. We find that class size has a sizeable and significant effect on the decision to stay on. This finding is very robust. Wage equations show the effect of staying on is significantly positive for wages. Combining this with the effect of class size on the staying on decision, reveals that class size significantly affects future wages. Reduced form models lead to much less accurate and insignificant estimates. Copyright Royal Economic Society 2003

Suggested Citation

  • Christian Dustmann & Najma Rajah & Arthur van Soest, 2003. "Class Size, Education, and Wages," Economic Journal, Royal Economic Society, vol. 113(485), pages 99-120, February.
    • Handle: RePEc:ecj:econjl:v:113:y:2003:i:485:p:f99-f120
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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