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Do reductions in class size "crowd out" parental investment in education?

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  • Datar, Ashlesha
  • Mason, Bryce
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    Abstract

    We use panel data from the kindergarten and 1st grade waves of the Early Childhood Longitudinal Study--Kindergarten Class to investigate whether increases in schooling inputs in the form of smaller classes "crowd out" parental inputs. We estimate child fixed-effect and fixed-effect-instrumental-variable models to identify the causal effects of class size on three types of parental involvement--parent--child interactions, parent-school interaction, and parent-financed activities for children. Our results suggest that increases in class size are associated with a decrease in parent-child interaction, no change in parent-school interaction, but an increase in parent-financed activities. The magnitude of these effects is between 3% and 7% of a standard deviation. Controlling for parental involvement in test score regressions does not change the achievement effects of class size, suggesting that the benefits of class size reduction are unlikely to be neutralized by adjustments in parental inputs, at least during the first 2 years in school.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economics of Education Review.

    Volume (Year): 27 (2008)
    Issue (Month): 6 (December)
    Pages: 712-723

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    Handle: RePEc:eee:ecoedu:v:27:y:2008:i:6:p:712-723

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    Web page: http://www.elsevier.com/locate/econedurev

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    Keywords: Human capital Educational economics;

    References

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    1. Stefan Dercon, 2004. "When Can School Inputs Improve Test Scores?," Economics Series Working Papers WPS/2004-25, University of Oxford, Department of Economics.
    2. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
    3. Ludger Wößmann & Martin R. West, 2002. "Class-Size Effects in School Systems Around the World: Evidence from Between-Grade Variation in TIMSS," Kiel Working Papers 1099, Kiel Institute for the World Economy.
    4. 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.
    5. Kim, Hong-Kyun, 2001. "Is there a crowding-out effect between school expenditure and mother's child care time?," Economics of Education Review, Elsevier, vol. 20(1), pages 71-80, February.
    6. Akerhielm, Karen, 1995. "Does class size matter?," Economics of Education Review, Elsevier, vol. 14(3), pages 229-241, September.
    7. Caroline M. Hoxby, 2000. "The Effects Of Class Size On Student Achievement: New Evidence From Population Variation," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1239-1285, November.
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    Cited by:
    1. Singh, Prakarsh, 2011. "Performance Pay and Information: Reducing Child Malnutrition in Urban Slums," MPRA Paper 29403, University Library of Munich, Germany.
    2. Luis Fernando Gamboa & Mauricio Rodríguez-Acosta & Andrés Felipe García-Suaza, 2010. "Academic achievement in sciences: the role of preferences and educative assets," DOCUMENTOS DE TRABAJO 006701, UNIVERSIDAD DEL ROSARIO.
    3. Jackson, Erika & Page, Marianne E., 2013. "Estimating the distributional effects of education reforms: A look at Project STAR," Economics of Education Review, Elsevier, vol. 32(C), pages 92-103.
    4. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, vol. 96(1), pages 237-254.
    5. Elena Del Rey & Fernanda Estevan, 2011. "Conditional Cash Transfers and Education Quality in the Presence of Credit Constraints," Working Papers 1108E, University of Ottawa, Department of Economics.
    6. Fredriksson, Peter & Öckert, Björn & Oosterbeek, Hessel, 2014. "Inside the Black Box of Class Size: Mechanisms, Behavioral Responses, and Social Background," IZA Discussion Papers 8019, Institute for the Study of Labor (IZA).
    7. Denny, Kevin & Oppedisano, Veruska, 2013. "The surprising effect of larger class sizes: Evidence using two identification strategies," Labour Economics, Elsevier, vol. 23(C), pages 57-65.

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