The impact of teachers’ wages on students’ performance in the presence of heterogeneity and endogeneity. Evidence from Brazil
AbstractIn this paper we estimate the effect of teachers’ wages on students’ achievement in a developing country. We use test scores of pupils enrolled in the 8th grade of primary school, surveyed in 2001 in Brazil. We regress individual student test scores on gross monthly teacher wages allowing for nonlinearities. Given the strong heterogeneity of Brazilian pupils and teachers, we estimate quantile regressions (QR), which provide, instead of a constant mean coefficient, a detailed characterization of the effect of teachers’ wages on conditional pupils’s scores. For the same reason, we also run separate regressions for private and public schools. We then account for potential endogeneity of teachers’ wages through the estimation of instrumental variables models (IV). Finally, we estimate two-stage least absolute deviation models (2SLAD), that allow us to cope simultaneously with the heterogeneity of the student-teacher relationship and with the endogeneity of teachers’s wages. Our results show that wages of language teachers have a small, but positive and significant effect, on student test scores in private schools, controlling for endogeneity, but that they are insignificant, or even negative, in public schools. We also observe that teacher wages show a decreasing effect as we move along the conditional distribution of scores. The same effects are found for mathematics teachers, but the results are less robust and the coefficients are smaller.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2005008.
Date of creation: 01 Mar 2005
Date of revision:
economics of education; human capital; resource allocation; eduction production functions; instrumental variables; two-stage least-squares; quatile regression; two-stage least absolute deviation;
Find related papers by JEL classification:
- I2 - Health, Education, and Welfare - - Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-29 (All new papers)
- NEP-EDU-2005-05-29 (Education)
- NEP-LAB-2005-05-29 (Labour Economics)
- NEP-URE-2005-05-29 (Urban & Real Estate Economics)
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