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Educational Production, Endogenous Peer Group Formation and Class Composition - Evidence from the PISA 2000 Study

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  • Fertig, Michael

    (RWI Essen and IZA Bonn)

Abstract

The majority of empirical papers in the literature on school quality finds no or only small effects of class size and other school quality measures on students' outcomes. This paper analyses the effect of achievement heterogeneity and therefore the effect of the composition rather than the pure size of the class on student achievement. In this endeavor, individual-level data from an internationally conducted standardized test, the PISA 2000 study is utilized. For the case of US schools the influence of a student's peer group is estimated in a pure endogenous effects model and a model also allowing for contextual effects. The potential endogeneity of peer group formation is addressed in an instrumental variable approach. It turns out that heterogeneous peer groups have a strong detrimental impact on individual achievement. Moreover, it becomes transparent that contextual variables are important for the extent of peer group effects and the endogeneity of peer group formation.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 76.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:76

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Web page: http://www.res.org.uk/society/annualconf.asp
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Keywords: peer group effects; learning environment; school quality;

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References

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Cited by:
  1. Schneeweis, Nicole & Winter-Ebmer, Rudolf, 2005. "Peer Effects in Austrian Schools," Economics Series 170, Institute for Advanced Studies.
  2. Michele Raitano & Francesco Vona, 2011. "Peer heterogeneity, school tracking and students'performances: evidence from Pisa 2006," Documents de Travail de l'OFCE 2011-22, Observatoire Francais des Conjonctures Economiques (OFCE).
  3. Michaelowa, Katharina & Bourdon, Jean, 2006. "The impact of student diversity in secondary schools: An analysis of the international PISA data and implications for the German education system," HWWI Research Papers 3-2, Hamburg Institute of International Economics (HWWI).
  4. Lionel Perini, 2012. "Peer effects and school design: An analysis of efficiency and equity," IRENE Working Papers 12-01, IRENE Institute of Economic Research.
  5. Masakazu Hojo, 2011. "Education Production Function and Class-Size Effects in Japanese Public Schools," Global COE Hi-Stat Discussion Paper Series gd11-194, Institute of Economic Research, Hitotsubashi University.

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