The authors estimate an education production function in which attainment depends upon parental inputs, peer group inputs, and schooling inputs. They find that parenting is much more important than schooling. The most powerful parental input is parental interest in education for which ordinary least squares does not give upward bias as B. H. Plowden (1967) suspected. The authors also find a strong peer group effect. The school pupil-teacher ratio does not enter significantly. A simulation study of the properties of their estimators indicates that the authors conclusions are robust. Copyright 1999 by Royal Economic Society.
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