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Long-term effects of class size

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Author Info

  • Fredriksson, Peter

    () (Stockholm University, IZA, IFAU, and UCLS)

  • Öckert, Björn

    () (Institute for Evaluation of Labour Market and Education Policy (IFAU), Uppsala University and UCLS)

  • Oosterbeek, Hessel

    () (University of Amsterdam)

Abstract

This paper evaluates the long-term effects of class size in primary school. We use rich data from Sweden and exploit variation in class size created by a maximum class size rule. Smaller classes in the last three years of primary school (age 10 to 13) are beneficial for cognitive and non-cognitive ability at age 13, and improve achievement at age 16. Most importantly, we find that smaller classes have positive effects on completed education, wages, and earnings at age 27 to 42. The estimated wage effect is much larger than any imputed estimate of the wage effect, and is large enough to pass a cost-benefit test.

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File URL: http://www2.ne.su.se/paper/wp12_08.pdf
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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2012:8.

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Length: 37 pages
Date of creation: 05 Jul 2012
Date of revision:
Handle: RePEc:hhs:sunrpe:2012_0008

Contact details of provider:
Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
Email:
Web page: http://www.ne.su.se/
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Related research

Keywords: Class size; regression discontinuity; cognitive skills; non-cognitive skills; educational attainment; earnings;

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References

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  1. Miguel Urquiola & Eric A. Verhoogen, 2007. "Class size and sorting in market equilibrium: Theory and evidence," Discussion Papers 0607-14, Columbia University, Department of Economics.
  2. Alan B. Krueger, 2000. "Economic Considerations and class size," Working Papers 975, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
  3. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
  4. Erik Lindqvist & Roine Vestman, 2011. "The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 101-28, January.
  5. Douglas Almond & Janet Currie, 2010. "Human Capital Development Before Age Five," NBER Working Papers 15827, National Bureau of Economic Research, Inc.
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  7. David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs in Economics," NBER Working Papers 14723, National Bureau of Economic Research, Inc.
  8. Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 777-803, August.
  9. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
  10. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
  11. Edwin Leuven & Hessel Oosterbeek & Marte Rønning, 2008. "Quasi-experimental Estimates of the Effect of Class Size on Achievement in Norway," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 663-693, December.
  12. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2010. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence From Project STAR," NBER Working Papers 16381, National Bureau of Economic Research, Inc.
  13. Dustmann, Christian & Rajah, Najma & van Soest, Arthur, 2002. "Class Size, Education and Wages," CEPR Discussion Papers 3397, C.E.P.R. Discussion Papers.
  14. David S. Lee & David Card, 2006. "Regression Discontinuity Inference with Specification Error," NBER Technical Working Papers 0322, National Bureau of Economic Research, Inc.
  15. 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.
  16. Lindahl, Mikael, 2001. "Home versus School Learning: A New Approach to Estimating the Effect of Class Size on Achievement," IZA Discussion Papers 261, Institute for the Study of Labor (IZA).
  17. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
  18. Lorraine Dearden & Javier Ferri & Costas Meghir, 2000. "The effect of school quality on educational attainment and wages," IFS Working Papers W00/22, Institute for Fiscal Studies.
  19. E Leuven & Hessel Oosterbeek & H van Ophern, 1998. "Explaining International Differences in Male Wage Inequality by differences in Demand and Supply of Skill," CEP Discussion Papers dp0392, Centre for Economic Performance, LSE.
  20. Miguel Urquiola, 2006. "Identifying Class Size Effects in Developing Countries: Evidence from Rural Bolivia," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 171-177, February.
  21. Carrington, William J & Troske, Kenneth R, 1997. "On Measuring Segregation in Samples with Small Units," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(4), pages 402-09, October.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Luck, & helpful illusions
    by chris dillow in Stumbling and Mumbling on 2012-07-19 13:38:56
  2. Childhood's legacy
    by chris dillow in Stumbling and Mumbling on 2012-11-06 14:01:55
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Cited by:
  1. Pekkarinen, Tuomas, 2012. "Gender Differences in Education," IZA Discussion Papers 6390, Institute for the Study of Labor (IZA).

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