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In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno

Author

Listed:
  • Joshua D. Angrist
  • Erich Battistin
  • Daniela Vuri

Abstract

Instrumental variables (IV) estimates show strong class-size effects in Southern Italy. But Italy's Mezzogiorno is distinguished by manipulation of standardized test scores as well as by economic disadvantage. IV estimates suggest small classes increase manipulation. We argue that score manipulation is a consequence of teacher shirking. IV estimates of a causal model for achievement as a function of class size and score manipulation show that class-size effects on measured achievement are driven entirely by the relationship between class size and manipulation. These results illustrate how consequential score manipulation can arise even in assessment systems with few accountability concerns.

Suggested Citation

  • Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2017. "In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno," American Economic Journal: Applied Economics, American Economic Association, vol. 9(4), pages 216-249, October.
    • Handle: RePEc:aea:aejapp:v:9:y:2017:i:4:p:216-49
    Note: DOI: 10.1257/app.20160267
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    Cited by:

    1. Belmonte, Alessandro & Bove, Vincenzo & D’Inverno, Giovanna & Modica, Marco, 2020. "School infrastructure spending and educational outcomes: Evidence from the 2012 earthquake in Northern Italy," Economics of Education Review, Elsevier, vol. 75(C).
    2. Singh, Abhijeet & Berg, Petter, 2024. "Myths of official measurement: Limits to test-based education reforms with weak governance," Journal of Public Economics, Elsevier, vol. 239(C).
    3. Mike Gilraine & Hugh Macartney & Rob McMillan, 2018. "Education Reform in General Equilibrium: Evidence from California's Class Size Reduction," Working Papers tecipa-594, University of Toronto, Department of Economics.
    4. Fenoll, Ainoa Aparicio & Campaniello, Nadia & Monzón, Ignacio, 2025. "Parental love is not blind: Identifying selection into early school start," European Economic Review, Elsevier, vol. 180(C).
    5. Bertoni, Marco & Brunello, Giorgio & De Benedetto, Marco Alberto & De Paola, Maria, 2021. "Does monitoring deter future cheating? The case of external examiners in Italian schools," Economics Letters, Elsevier, vol. 201(C).
    6. Mangiavacchi, Lucia & Piccoli, Luca & Pieroni, Luca, 2021. "Fathers matter: Intrahousehold responsibilities and children's wellbeing during the COVID-19 lockdown in Italy," Economics & Human Biology, Elsevier, vol. 42(C).
    7. Tanaka, Ryuichi & Wang, Tong, 2025. "How do classmates matter for the class-size effects?," Economics of Education Review, Elsevier, vol. 108(C).
    8. José Montalbán, 2023. "Countering Moral Hazard in Higher Education: The Role of Performance Incentives in Need-Based Grants," The Economic Journal, Royal Economic Society, vol. 133(649), pages 355-389.
    9. Michael Gilraine & Hugh Macartney & Robert McMillan, 2018. "Estimating the Direct and Indirect Effects of Major Education Reforms," NBER Working Papers 24191, National Bureau of Economic Research, Inc.
    10. Bertoni, Marco & Brunello, Giorgio & De Benedetto, Marco Alberto & De Paola, Maria, 2019. "External Monitors and Score Manipulation in Italian Schools: Symptomatic Treatment or Cure?," IZA Discussion Papers 12591, IZA Network @ LISER.
    11. Berkhout, Emilie & Pradhan, Menno & Rahmawati, & Suryadarma, Daniel & Swarnata, Arya, 2024. "Using technology to prevent fraud in high stakes national school examinations: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 170(C).
    12. Opatrny, Matej & Havranek, Tomas & Irsova, Zuzana & Ščasný, Milan, 2023. "Class Size and Student Achievement: A Modern Meta-Analysis," MetaArXiv ekrqs_v1, Center for Open Science.
    13. Moti Michaeli & Marco Casari & Andrea Ichino & Maria De Paola & Ginevra Marandola & Vincenzo Scoppa, 2023. "Civicness Drain," The Economic Journal, Royal Economic Society, vol. 133(649), pages 323-354.
      • Casari, Marco & Ichino, Andrea & Michaeli, Moti & De Paola, Maria & Marandola, Ginevra & Scoppa, Vincenzo, 2018. "Civicness Drain," IZA Discussion Papers 11955, IZA Network @ LISER.
      • Ichino, Andrea & Casari, Marco & Michaeli, Moti & De Paola, Maria & Marandola, Ginevra & Scoppa, Vincenzo, 2018. "Civicness drain," CEPR Discussion Papers 13311, C.E.P.R. Discussion Papers.
    14. Machin, Stephen & McNally, Sandra & Ruiz-Valenzuela, Jenifer, 2020. "Entry through the narrow door: The costs of just failing high stakes exams," Journal of Public Economics, Elsevier, vol. 190(C).
    15. Cavalieri, Marina & Finocchiaro Castro, Massimo & Guccio, Calogero, 2023. "Organised crime and educational outcomes in Southern Italy: An empirical investigation," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    16. Ichino, Andrea & Anelli, Massimo & Colussi, Tommaso, 2021. "Aversion to breaking rules and migration," CEPR Discussion Papers 16052, C.E.P.R. Discussion Papers.
    17. Matej Opatrny & Tomas Havranek & Zuzana Irsova & Milan Scasny, 2023. "Publication Bias and Model Uncertainty in Measuring the Effect of Class Size on Achievement," Working Papers IES 2023/19, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2023.
    18. Mariagrazia Cavallo & Giuseppe Russo, 2020. "Reading Performance and Math Performance of Second-Generation Children in Italy," CSEF Working Papers 554, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    19. Giorgio Brunello & Angela Crema & Lorenzo Rocco, 2021. "Some Unpleasant Consequences of Testing at Length," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 1002-1023, August.
    20. Checchi, Daniele & De Paola, Maria, 2018. "The effect of multigrade classes on cognitive and non- cognitive skills. Causal evidence exploiting minimum class size rules in Italy✰," Economics of Education Review, Elsevier, vol. 67(C), pages 235-253.
    21. Battistin, Erich & De Nadai, Michele & Vuri, Daniela, 2017. "Counting rotten apples: Student achievement and score manipulation in Italian elementary Schools," Journal of Econometrics, Elsevier, vol. 200(2), pages 344-362.
    22. Aparicio Fenoll, Ainoa, 2021. "The best in the class," Economics of Education Review, Elsevier, vol. 84(C).

    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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