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New Evidence on Class Size Effects: A Pupil Fixed Effects Approach

  • Nadir Altinok
  • Geeta Kingdon

The impact of class size on student achievement remains a thorny question for educational decision makers.� Meta-analyses of empirical studies emphasise the absence of class-size efects but detractors have argued against such pessimistic conclusions because many of the underlying studies have not paid attention to the endogeneity of class-size.� This paper uses a stringent method to address the endogeneity problem using TIMSS data on 45 countries.� We measure the class size effect by relating the difference in a student's achievement across subjects to the difference in his/her class-size across subjects.� This (subject-differenced) within-pupil achievement production function avoids the problem of the non-random matching of children to specific schools, and to classes within schools.� The results show a statistically significant effect of class size for 16 countries but in only 10 of them is the effect negative, and the effect size is very small in most cases.� Several robustness tests are carried out, including control for students' subject-specific ability and subject-specific teacher characteristics, and correct for possible measurement error.� Thus, our stringent approach to addressing the problem endogeneity confirms the findings of meta-analyses that find little support for class size effects.� We find that class-size effects are smaller in resource-rich countries than in developing countries, supporting the idea that the adverse effect of larger classes increases with class-size.� We also find that class size effects are smaller in regions with higher teacher quality.

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Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 74 (2012)
Issue (Month): 2 (04)
Pages: 203-234

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Handle: RePEc:bla:obuest:v:74:y:2012:i:2:p:203-234
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  1. Eric A. Hanushek, 2003. "The Failure of Input-Based Schooling Policies," Economic Journal, Royal Economic Society, vol. 113(485), pages F64-F98, February.
  2. Alan B. Krueger, 1997. "Experimental Estimates of Education Production Functions," NBER Working Papers 6051, National Bureau of Economic Research, Inc.
  3. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  4. Kenneth I. Wolpin & Mark R. Rosenzweig, 2000. "Natural "Natural Experiments" in Economics," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 827-874, December.
  5. Hanushek, Eric A., 2006. "School Resources," Handbook of the Economics of Education, Elsevier.
  6. repec:tpr:qjecon:v:115:y:2000:i:4:p:1239-1285 is not listed on IDEAS
  7. Thomas S. Dee, 2005. "Teachers and the Gender Gaps in Student Achievement," NBER Working Papers 11660, National Bureau of Economic Research, Inc.
  8. Aslam, Monazza & Kingdon, Geeta, 2011. "What can teachers do to raise pupil achievement?," Economics of Education Review, Elsevier, vol. 30(3), pages 559-574, June.
  9. repec:tpr:qjecon:v:114:y:1999:i:2:p:533-575 is not listed on IDEAS
  10. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 533-575.
  11. Michael Kremer, 2003. "Randomized Evaluations of Educational Programs in Developing Countries: Some Lessons," American Economic Review, American Economic Association, vol. 93(2), pages 102-106, May.
  12. Holmlund, Helena & Sund, Krister, 2005. "Is the Gender Gap in School Performance Affected by the Sex of the Teacher?," Working Paper Series 5/2005, Swedish Institute for Social Research.
  13. Geeta Gandhi Kingdon, 2006. "Teacher characteristics and student performance in India: A pupil fixed effects approach," Economics Series Working Papers GPRG-WPS-059, University of Oxford, Department of Economics.
  14. Geeta Kingdon & Francis Teal, 2008. "Teacher Unions, Teacher Pay and Student Performance in India: A Pupil Fixed Effects Approach," CESifo Working Paper Series 2428, CESifo Group Munich.
  15. Ammermüller, Andreas & Dolton, Peter J., 2006. "Pupil-teacher gender interaction effects on scholastic outcomes in England and the USA," ZEW Discussion Papers 06-60, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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