Although recent evidence suggests that non-cognitive skills such as engagement matter for academic and economic success, there is little evidence on how key educational inputs affect the development of these skills. We present a re-analysis of follow-up data from the Project STAR class-size experiment and find evidence that early-grade class-size reductions did improve subsequent student initiative. However, these effects did not persist into the 8th grade. Furthermore, the external and, possibly, the internal validity of these inferences is compromised by non-random attrition. We also present a complementary analysis based on nationally representative survey data and a research design that relies on contemporaneous within-student and within-teacher comparisons across two academic subjects. Our results indicate that smaller classes in 8th grade lead to improvements in measures of student engagement with effect sizes ranging from 0.05 to 0.09 and smaller effects persisting two years later. Using the estimated earnings impact of these non-cognitive skills and the direct cost of a class-size reduction, the implied internal rate of return from an 8th-grade class-size reduction is 4.6 percent overall, but 7.9 percent in urban schools.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
13994.
Length: Date of creation: May 2008 Date of revision: Handle: RePEc:nbr:nberwo:13994
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Find related papers by JEL classification: I20 - Health, Education, and Welfare - - Education - - - General I21 - Health, Education, and Welfare - - Education - - - Analysis of Education I28 - Health, Education, and Welfare - - Education - - - Government Policy
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Carneiro, Pedro & Heckman, James J., 2003.
"Human Capital Policy,"
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James Heckman & Pedro Carneiro, 2003.
"Human Capital Policy,"
NBER Working Papers
9495, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Alan B. Krueger, 2000.
"Economic Considerations and class size,"
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975, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
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