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The Treatment Effect of Attending a High-Quality School and the Influence of Unobservables

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  • Storck, Johanna
  • Freier, Ronny
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    Abstract

    This paper studies the effect of attending a high-quality secondary school on subsequent educational outcomes. The analysis is based on data from the German Socio-Economic Panel Study in which we observe children when they make their secondary school choice (between ages 10-12) and later when they self-report on their intentions with regard to their further educational path (between ages 16-17). To identify the treatment effect, we use a regression-control framework as well as an instrumental variable approach (based on local supply of schools). In a second step, we carefully examine the influence of unobservable characteristics, using the new technique proposed by Altonji, Elder, and Taber (2005b). Our findings suggest that unobservable characteristics are indeed crucial to the validity of the research design. While we find large positive and significant effects of attending a high-quality school, we cannot rule out that the estimates are not in fact driven by selection on unobservables. --

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    Bibliographic Info

    Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79879.

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    Date of creation: 2013
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    Handle: RePEc:zbw:vfsc13:79879

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    1. Sandra E. Black, 1997. "Do better schools matter? Parental valuation of elementary education," Research Paper 9729, Federal Reserve Bank of New York.
    2. Eric A. Hanushek & Ludger Wößmann, 2005. "Does Education Tracking Affect Performance and Inequality? Differences-In-Differences Evidence Across Countries," Discussion Papers 04-027, Stanford Institute for Economic Policy Research.
    3. Vardardottir, Arna, 2013. "Peer effects and academic achievement: a regression discontinuity approach," Economics of Education Review, Elsevier, vol. 36(C), pages 108-121.
    4. Victor Lavy & Olmo Silva & Felix Weinhardt, 2012. "The Good, the Bad, and the Average: Evidence on Ability Peer Effects in Schools," Journal of Labor Economics, University of Chicago Press, vol. 30(2), pages 367 - 414.
    5. Evans, William N & Schwab, Robert M, 1995. "Finishing High School and Starting College: Do Catholic Schools Make a Difference?," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 941-74, November.
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