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Recovering Distributions in Difference-in-Differences Models: A Comparison of Selective and Comprehensive Schooling

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  • Stéphane Bonhomme

    (CEMFI, Madrid)

  • Ulrich Sauder

    (University of Warwick)

Abstract

We compare the effects of selective and nonselective secondary education on children's test scores, using British data from the National Child Development Study. Test scores are modeled as the output of an additive production function. An important input is the child's unobserved initial endowment, which may be correlated with the education system attended. In this model, we generalize the difference-in-differences approach and identify the entire counterfactual distribution of potential outcomes. Our results suggest that the better performance of selective schools relative to nonselective ones is essentially due to differences in pupils' composition. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Stéphane Bonhomme & Ulrich Sauder, 2011. "Recovering Distributions in Difference-in-Differences Models: A Comparison of Selective and Comprehensive Schooling," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 479-494, May.
  • Handle: RePEc:tpr:restat:v:93:y:2011:i:2:p:479-494
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    Cited by:

    1. Irene Botosaru & Chris Muris, 2017. "Binarization for panel models with fixed effects," CeMMAP working papers CWP31/17, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    2. Fan, Yanqin & Yu, Zhengfei, 2012. "Partial identification of distributional and quantile treatment effects in difference-in-differences models," Economics Letters, Elsevier, vol. 115(3), pages 511-515.
    3. Lechner, Michael, 2011. "The Estimation of Causal Effects by Difference-in-Difference Methods," Foundations and Trends(R) in Econometrics, now publishers, vol. 4(3), pages 165-224, November.
    4. Cañón Salazar Carlos Iván, 2016. "Distributional Policy Effects with Many Treatment Outcomes," Working Papers 2016-01, Banco de México.
    5. Anirban Basu & Andrew M. Jones & Pedro Rosa Dias, 2014. "The Roles of Cognitive and Non-Cognitive Skills in Moderating the Effects of Mixed-Ability Schools on Long-Term Health," NBER Working Papers 20811, National Bureau of Economic Research, Inc.
    6. Mora, Ricardo & Reggio, Iliana, 2012. "Treatment effect identification using alternative parallel assumptions," UC3M Working papers. Economics we1233, Universidad Carlos III de Madrid. Departamento de Economía.
    7. Strittmatter, Anthony, 2014. "Why does the Job Corps increase gender earnings inequality?," Economics Working Paper Series 1429, University of St. Gallen, School of Economics and Political Science, revised Apr 2017.

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