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Revisiting fixed- and random-effects models: some considerations for policy-relevant education research

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  • Paul Clarke
  • Claire Crawford
  • Fiona Steele
  • Anna Vignoles

Abstract

The use of fixed (FE) and random effects (RE) in two-level hierarchical linear regression is discussed in the context of education research. We compare the robustness of FE models with the modelling flexibility and potential efficiency of those from RE models. We argue that the two should be seen as complementary approaches. We then compare both modelling approaches in our empirical examples. Results suggest a negative effect of special educational needs (SEN) status on educational attainment, with selection into SEN status largely driven by pupil level rather than school-level factors.

Suggested Citation

  • Paul Clarke & Claire Crawford & Fiona Steele & Anna Vignoles, 2015. "Revisiting fixed- and random-effects models: some considerations for policy-relevant education research," Education Economics, Taylor & Francis Journals, vol. 23(3), pages 259-277, June.
  • Handle: RePEc:taf:edecon:v:23:y:2015:i:3:p:259-277
    DOI: 10.1080/09645292.2013.855705
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    1. Robert MacCoun, 2003. "Experimental and Quasi-Experimental Designs for Generalized Causal Inference , by William R. Shadish, Thomas D. Cook, and Donald T. Campbell. Boston: Houghton Mifflin, 2001, 623 pp., $65.56," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(2), pages 330-332.
    2. Peter Ebbes & Ulf Böckenholt & Michel Wedel, 2004. "Regressor and random‐effects dependencies in multilevel models," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 58(2), pages 161-178, May.
    3. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2002. "Inferring Program Effects for Special Populations: Does Special Education Raise Achievement for Students with Disabilities?," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 584-599, November.
    4. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
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    4. Christian D. Mina & Katsushi S. Imai, 2017. "Estimation of Vulnerability to Poverty Using a Multilevel Longitudinal Model: Evidence from the Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 53(12), pages 2118-2144, December.
    5. Adamecz-Völgyi, Anna & Henderson, Morag & Shure, Nikki, 2020. "Is ‘first in family’ a good indicator for widening university participation?," Economics of Education Review, Elsevier, vol. 78(C).
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    7. Fiona Steele & Emily Grundy, 2021. "Random effects dynamic panel models for unequally spaced multivariate categorical repeated measures: an application to child–parent exchanges of support," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 70(1), pages 3-23, January.
    8. Steele, Fiona & Grundy, Emily, 2021. "Random effects dynamic panel models for unequally-spaced multivariate categorical repeated measures: an application to child-parent exchanges of support," LSE Research Online Documents on Economics 106255, London School of Economics and Political Science, LSE Library.
    9. Tran, Dai Binh & Tran, Hanh Thi My & Pham, Thao Dinh Ngoc & Nguyen, Thuy Thanh, 2023. "Education and agricultural household income: Comparative evidence from Vietnam and Thailand," World Development Perspectives, Elsevier, vol. 29(C).
    10. Wang, Haining & Smyth, Russell & Cheng, Zhiming, 2017. "The economic returns to proficiency in English in China," China Economic Review, Elsevier, vol. 43(C), pages 91-104.
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    12. Kim, Janice H., 2022. "Preschool participation and students’ learning outcomes in primary school: Evidence from national reform of pre-primary education in Ethiopia," International Journal of Educational Development, Elsevier, vol. 94(C).
    13. Joohun Han & Chanjin Chung, 2021. "Impact of Aging and Underemployment on Income Disparity between Agricultural and Non-Agricultural Households," Sustainability, MDPI, vol. 13(21), pages 1-15, October.

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