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Early tracking and the misfortune of being young

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Author Info

  • Nicole Schneeweis
  • Martina Zweimüller

Abstract

In the Austrian (as well as the German) education system students have to choose between different school tracks at the age of 10. We argue that early tracking creates inefficiencies because the earlier the track choice has to be made, the more it is influenced by factors other than innate ability. Recent evidence suggests that the relative age of a student within a grade is related to his or her achievement, and that this effect is decreasing over grades. Thus, age-related achievement differences probably translate into age-related differences in track choice if track choice has to be made early. In this paper we estimate the effect of observed age on the track choice after grade 4 using register data for a major Austrian city for the period 1984-2006. Since observed age at track choice is endogenous, we exploit the exogenous variation in birth month to identify the causal effect of age. We find a strong and sig- nificant positive effect of age on track choice in grades 5-8. Since after grade 8, students again have to make a track choice, we use additional data from PISA 2003 and 2006 to show that the effect is long-lasting in urban areas. Therefore, the education system fails to provide a mechanism that leads to an efficient allocation of students to tracks.

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Bibliographic Info

Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2009-11.

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Length: 24 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:jku:econwp:2009_11

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Keywords: Early tracking; school choice; age effect; instrumental variables; birth month;

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References

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  1. Eric A. Hanushek & Ludger Woessmann, 2005. "Does Educational Tracking Affect Performance and Inequality? Differences-in-Differences Evidence across Countries," CESifo Working Paper Series 1415, CESifo Group Munich.
  2. Scott E. Carrell & Mark L. Hoekstra, 2010. "Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone's Kids," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 211-28, January.
  3. Giorgio Brunello & Daniele Checchi, 2007. "Does school tracking affect equality of opportunity? New international evidence," Economic Policy, CEPR & CES & MSH, vol. 22, pages 781-861, October.
  4. Manning, Alan & Pischke, Jörn-Steffen, 2006. "Comprehensive versus Selective Schooling in England and Wales: What Do We Know?," CEPR Discussion Papers 5653, C.E.P.R. Discussion Papers.
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  6. Tuomas Pekkarinen & Roope Uusitalo & Sari Kerr, 2009. "School tracking and development of cognitive skills," Working Papers 2, Government Institute for Economic Research Finland (VATT).
  7. 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.
  8. Pekkarinen, Tuomas & Uusitalo, Roope & Kerr, Sari, 2009. "School tracking and intergenerational income mobility: Evidence from the Finnish comprehensive school reform," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 965-973, August.
  9. Pekkarinen, Tuomas, 2005. "Gender Differences in Educational Attainment: Evidence on the Role of the Tracking Age from a Finnish Quasi-Experiment," IZA Discussion Papers 1897, Institute for the Study of Labor (IZA).
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  11. 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.
  12. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2008. "Too Young to Leave the Nest: The Effects of School Starting Age," NBER Working Papers 13969, National Bureau of Economic Research, Inc.
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  15. Jacob M. Markman & Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2003. "Does peer ability affect student achievement?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 527-544.
  16. Victor Lavy & M. Daniele Paserman & Analia Schlosser, 2008. "Inside the Black of Box of Ability Peer Effects: Evidence from Variation in the Proportion of Low Achievers in the Classroom," NBER Working Papers 14415, National Bureau of Economic Research, Inc.
  17. Michael Fertig & Jochen Kluve, 2005. "The Effect of Age at School Entry on Educational Attainment in Germany," RWI Discussion Papers 0027, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  18. Christian Dustmann, 2004. "Parental background, secondary school track choice, and wages," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 209-230, April.
  19. Costas Meghir & Mårten Palme, 2004. "Educational reform, ability and family background," IFS Working Papers W04/10, Institute for Fiscal Studies.
  20. Fernando Galindo-Rueda & Anna Vignoles, 2005. "The Heterogeneous Effect of Selection in Secondary Schools: Understanding the Changing Role of Ability," CEE Discussion Papers 0052, Centre for the Economics of Education, LSE.
  21. Kasey S. Buckles & Daniel M. Hungerman, 2013. "Season of Birth and Later Outcomes: Old Questions, New Answers," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 711-724, July.
  22. Duflo, Esther & Dupas, Pascaline & Kremer, Michael, 2008. "Peer Effects and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," CEPR Discussion Papers 7043, C.E.P.R. Discussion Papers.
  23. Todd E. Elder & Darren H. Lubotsky, 2009. "Kindergarten Entrance Age and Children’s Achievement: Impacts of State Policies, Family Background, and Peers," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
  24. Kelly Bedard & Elizabeth Dhuey, 2006. "The Persistence of Early Childhood Maturity: International Evidence of Long-Run Age Effects," The Quarterly Journal of Economics, MIT Press, vol. 121(4), pages 1437-1472, November.
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Citations

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Cited by:
  1. Natalia Danzer & Victor Lavy, 2013. "Parental Leave and Children’s Schooling Outcomes: Quasi-Experimental Evidence from a Large Parental Leave Reform," NBER Working Papers 19452, National Bureau of Economic Research, Inc.
  2. Martina Zweimüller, 2013. "The effects of school entry laws on educational attainment and starting wages in an early tracking system," NRN working papers 2013-05, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  3. Nicole Schneeweis, 2013. "Immigrant concentration in schools: Consequences for native and migrant students," Economics working papers 2013-03, Department of Economics, Johannes Kepler University Linz, Austria.
  4. Hendrik Jürges & Kerstin Schneider, 2011. "Why Young Boys Stumble: Early Tracking, Age and Gender Bias in the German School System," German Economic Review, Verein für Socialpolitik, vol. 12(4), pages 371-394, November.

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