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Do reductions in class size "crowd out" parental investment in education?

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  • Datar, Ashlesha
  • Mason, Bryce

Abstract

We use panel data from the kindergarten and 1st grade waves of the Early Childhood Longitudinal Study--Kindergarten Class to investigate whether increases in schooling inputs in the form of smaller classes "crowd out" parental inputs. We estimate child fixed-effect and fixed-effect-instrumental-variable models to identify the causal effects of class size on three types of parental involvement--parent--child interactions, parent-school interaction, and parent-financed activities for children. Our results suggest that increases in class size are associated with a decrease in parent-child interaction, no change in parent-school interaction, but an increase in parent-financed activities. The magnitude of these effects is between 3% and 7% of a standard deviation. Controlling for parental involvement in test score regressions does not change the achievement effects of class size, suggesting that the benefits of class size reduction are unlikely to be neutralized by adjustments in parental inputs, at least during the first 2 years in school.

Suggested Citation

  • Datar, Ashlesha & Mason, Bryce, 2008. "Do reductions in class size "crowd out" parental investment in education?," Economics of Education Review, Elsevier, vol. 27(6), pages 712-723, December.
  • Handle: RePEc:eee:ecoedu:v:27:y:2008:i:6:p:712-723
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    References listed on IDEAS

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    Cited by:

    1. Luis Fernando Gamboa & Mauricio Rodríguez-Acosta & Andrés Felipe García-Suaza, 2010. "Academic achievement in sciences: the role of preferences and educative assets," DOCUMENTOS DE TRABAJO 006701, UNIVERSIDAD DEL ROSARIO.
    2. Per Johansson & Lisa Laun & Mårten Palme, 2016. "Health, Work Capacity, and Retirement in Sweden," NBER Chapters,in: Social Security Programs and Retirement Around the World: The Capacity to Work at Older Ages, pages 301-327 National Bureau of Economic Research, Inc.
    3. Fredriksson, Peter & Öckert, Björn & Oosterbeek, Hessel, 2014. "Inside the Black Box of Class Size: Mechanisms, Behavioral Responses, and Social Background," IZA Discussion Papers 8019, Institute for the Study of Labor (IZA).
    4. Walsh, Patrick, 2010. "Is parental involvement lower at larger schools?," Economics of Education Review, Elsevier, vol. 29(6), pages 959-970, December.
    5. Denny, Kevin & Oppedisano, Veruska, 2013. "The surprising effect of larger class sizes: Evidence using two identification strategies," Labour Economics, Elsevier, pages 57-65.
    6. Adriana Di Liberto & Fabiano Schivardi & Giovanni Sulis, 2015. "Managerial practices and student performance," Economic Policy, CEPR;CES;MSH, pages 683-728.
    7. Martin Browning & Eskil Heinesen, 2014. "Study versus television," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), pages 1-16.
    8. Jackson, Erika & Page, Marianne E., 2013. "Estimating the distributional effects of education reforms: A look at Project STAR," Economics of Education Review, Elsevier, pages 92-103.
    9. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, pages 237-254.
    10. Singh, Prakarsh, 2011. "Performance Pay and Information: Reducing Child Malnutrition in Urban Slums," MPRA Paper 29403, University Library of Munich, Germany.
    11. Elena Del Rey & Fernanda Estevan, 2011. "Conditional Cash Transfers and Education Quality in the Presence of Credit Constraints," Working Papers 1108E, University of Ottawa, Department of Economics.
    12. Estelle, Sarah M., 2011. "The academic impact on children of maternal post-secondary enrollment," Economics of Education Review, Elsevier, vol. 30(2), pages 353-364, April.
    13. Peter Fredriksson & Björn Öckert & Hessel Oosterbeek, 2016. "Parental Responses to Public Investments in Children: Evidence from a Maximum Class Size Rule," Journal of Human Resources, University of Wisconsin Press, pages 832-868.
    14. Lixin He & Hiroshi Sato, 2013. "Income Redistribution In Urban China By Social Security System—An Empirical Analysis Based On Annual And Lifetime Income," Contemporary Economic Policy, Western Economic Association International, pages 314-331.
    15. Holford, Angus, 2015. "Youth employment and academic performance: production functions and policy effects," ISER Working Paper Series 2015-06, Institute for Social and Economic Research.
    16. Midori Otani, 2016. "Empirical Analysis of Informative School Outreach on Home-based Parental Involvement," OSIPP Discussion Paper 16E008, Osaka School of International Public Policy, Osaka University.
    17. Del Rey, Elena & Estevan, Fernanda, 2013. "Conditional cash transfers and education quality in the presence of credit constraints," Economics of Education Review, Elsevier, pages 76-84.
    18. Maria E. Canon, 2011. "Out-of-school suspensions and parental involvement in children’s education," Working Papers 2011-022, Federal Reserve Bank of St. Louis.

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    Keywords

    Human capital Educational economics;

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