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The surprising effect of larger class sizes: Evidence using two identification strategies

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  • Denny, Kevin
  • Oppedisano, Veruska

Abstract

This paper estimates the marginal effect of class size on educational attainment of high school students. We control for the potential endogeneity of class size in two ways using a conventional instrumental variable approach, based on changes in cohort size, and an alternative method where identification is based on restrictions on higher moments. The data is drawn from the Program for International Student Assessment (PISA) collected in 2003 for the United States and the United Kingdom. Using either method or the two in conjunction leads to the conclusion that increases in class size lead to improvements in student's mathematics scores. Only the results for the United Kingdom are statistically significant.

Suggested Citation

  • Denny, Kevin & Oppedisano, Veruska, 2013. "The surprising effect of larger class sizes: Evidence using two identification strategies," Labour Economics, Elsevier, vol. 23(C), pages 57-65.
  • Handle: RePEc:eee:labeco:v:23:y:2013:i:c:p:57-65
    DOI: 10.1016/j.labeco.2013.04.004
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    More about this item

    Keywords

    Class sizes; Educational production; Endogeneity; Instrumental variables;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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