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Balancing the risk of ‘Lazearian’ interrupters and the benefits of educational and social peers: tracing parental preferences for class-size reduction

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  • Karl Fritjof Krassel
  • Jacob Ladenburg
  • Camilla Dalsgaard

Abstract

Using Danish survey data from a choice experiment, parental preferences for class-size reduction are estimated. While parents with children in large classes are willing to pay for class-size reduction, parents with children in small classes are reluctant and even express negative utility for further class-size reduction. We interpret this as parents balancing the risk of ‘Lazearian’ interrupters and the benefits of educational and social peers when forming their preferences for class size.

Suggested Citation

  • Karl Fritjof Krassel & Jacob Ladenburg & Camilla Dalsgaard, 2016. "Balancing the risk of ‘Lazearian’ interrupters and the benefits of educational and social peers: tracing parental preferences for class-size reduction," Applied Economics Letters, Taylor & Francis Journals, vol. 23(7), pages 471-481, May.
  • Handle: RePEc:taf:apeclt:v:23:y:2016:i:7:p:471-481
    DOI: 10.1080/13504851.2015.1083073
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    References listed on IDEAS

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    1. Andreas Ammermueller & Jörn-Steffen Pischke, 2009. "Peer Effects in European Primary Schools: Evidence from the Progress in International Reading Literacy Study," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 315-348, July.
    2. 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.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, December.
    4. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1593-1660.
    5. Carlsson, Fredrik & Frykblom, Peter & Johan Lagerkvist, Carl, 2005. "Using cheap talk as a test of validity in choice experiments," Economics Letters, Elsevier, vol. 89(2), pages 147-152, November.
    6. 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.
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