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Institutional Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries

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  • Ludger Woessmann

    ()
    (CESifo and IZA Munich)

Abstract

Cross-country evidence on student achievement might be hampered by omitted country characteristics such as language or legal differences. This paper uses cross-state variation in Germany, whose sixteen states share the same language and legal system, but pursue different education policies. Education production function models are estimated using state-level PISA-E data, where possible pooling three subjects and three waves to obtain up to 138 test-score observations. The same results found previously across countries holdwithin Germany:Higher mean student performance is associated with central exams, private school operation, and socio- economic background, but not with spending, while higher equality of opportunity is associated with reduced tracking. In models that pool German states with OECD countries and combine up to 54 state and country observations, these institutional determinants do not differ significantly between the sample of German states and the sample of OECD countries, indicating that the existing cross-country evidence is not substantially biased by unobserved countryspecific factors.

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Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 230 (2010)
Issue (Month): 2 ()
Pages: 234-270

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Handle: RePEc:jns:jbstat:v:230:y:2010:i:2:p:234-270

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Keywords: Student performance; PISA; Germany; education production function; institutional effects in schooling;

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References

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  1. Fuchs, Thomas & Woessmann, Ludger, 2004. "What Accounts for International Differences in Student Performance? A Re-Examination Using PISA Data," IZA Discussion Papers 1287, Institute for the Study of Labor (IZA).
  2. Martin R. West & Ludger Woessmann, 2010. "'Every Catholic Child in a Catholic School': Historical Resistance to State Schooling, Contemporary Private Competition and Student Achievement across Countries," Economic Journal, Royal Economic Society, vol. 120(546), pages F229-F255, 08.
  3. Schütz, Gabriela & Ursprung, Heinrich W. & Wößmann, Ludger, 2008. "Education policy and equality of opportunity," Munich Reprints in Economics 19901, University of Munich, Department of Economics.
  4. Hendrik Jürges & Wolfram F. Richter & Kerstin Schneider, 2005. "Teacher quality and incentives - Theoretical and empirical effects of standards on teacher quality," MEA discussion paper series 05091, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  5. Eric A. Hanushek & Steven G. Rivkin & Lori L. Taylor, 1996. "Aggregation and the Estimated Effects of School Resources," NBER Working Papers 5548, National Bureau of Economic Research, Inc.
  6. Michael Fertig & Robert E. Wright, 2003. "School Quality, Educational Attainment and Aggregation Bias," RWI Discussion Papers 0009, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  7. Bishop, John H. & Ludger Woessmann, 2002. "Institutional Effects in a Simple Model of Educational Production," Royal Economic Society Annual Conference 2002 29, Royal Economic Society.
  8. Andrei Shleifer, 1998. "State versus Private Ownership," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 133-150, Fall.
  9. Wößmann, Ludger, 2007. "International evidence on school competition, autonomy, and accountability: A review," Munich Reprints in Economics 19649, University of Munich, Department of Economics.
  10. Wößmann, Ludger, 2005. "Educational production in Europe," Munich Reprints in Economics 19656, University of Munich, Department of Economics.
  11. Lee, J.-W. & Barro, R.J., 1998. "Schooling Quality in a Cross Section of Countries," Papers 659, Harvard - Institute for International Development.
  12. Gundlach, Erich & Wossmann, Ludger & Gmelin, Jens, 2001. "The Decline of Schooling Productivity in OECD Countries," Economic Journal, Royal Economic Society, vol. 111(471), pages C135-47, May.
  13. Wößmann, Ludger, 2009. "International evidence on school tracking: A review," Munich Reprints in Economics 19686, University of Munich, Department of Economics.
  14. Hendrik Jürges & Kerstin Schneider & Felix Büchel, 2003. "The Effect of Central Exit Examinations on Student Achievement: Quasi-experimental Evidence from TIMSS Germany," CESifo Working Paper Series 939, CESifo Group Munich.
  15. Ammermüller, Andreas, 2005. "Educational Opportunities and the Role of Institutions," ZEW Discussion Papers 05-44, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  16. Bauer, Philipp & Riphahn, Regina T., 2006. "Timing of school tracking as a determinant of intergenerational transmission of education," Economics Letters, Elsevier, vol. 91(1), pages 90-97, April.
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Cited by:
  1. Piopiunik, Marc & Schwerdt, Guido & Wößmann, Ludger, 2013. "Central school exit exams and labor-market outcomes," Munich Reprints in Economics 19325, University of Munich, Department of Economics.
  2. Bauer, Philipp C. & Riphahn, Regina T., 2013. "Institutional determinants of intergenerational education transmission — Comparing alternative mechanisms for natives and immigrants," Labour Economics, Elsevier, vol. 25(C), pages 110-122.
  3. Meyer, Tobias & Thomsen, Stephan L., 2012. "How Important is Secondary School Duration for Post-school Education Decisions? Evidence from a Natural Experiment," Hannover Economic Papers (HEP) dp-509, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  4. HINDRIKS, Jean & VERSCHELDE, Marijn & RAYP, Glenn & SCHOORS, Koen, 2010. "School autonomy and educational performance: within-country evidence," CORE Discussion Papers 2010082, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Philipp Mandel & Bernd Süssmuth, 2011. "Total Instructional Time Exposure and Student Achievement: An Extreme Bounds Analysis Based on German State-Level Variation," CESifo Working Paper Series 3580, CESifo Group Munich.
  6. Ludger Wößmann, 2011. "Wettbewerb durch öffentliche Finanzierung von Schulen in freier Trägerschaft als wichtiger Ansatzpunkt zur Verbesserung des Schulsystems," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(01), pages 09-18, 01.

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