IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/11666.html
   My bibliography  Save this paper

In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno

Author

Listed:
  • Battistin, Erich
  • Vuri, Daniela
  • Angrist, Josh

Abstract

Instrumental variables (IV) estimates show strong class size effects in Southern Italy. But Italy’s Mezzogiorno is distinguished by manipulation of standardized test scores as well as by economic disadvantage. IV estimates suggest small classes increase manipulation. We argue that score manipulation is a consequence of teacher shirking. IV estimates of a causal model for achievement as function of class size and score manipulation show that class size effects on measured achievement are driven entirely by the relationship between class size and manipulation. These results show how consequential score manipulation can arise even in assessment systems with few accountability concerns.

Suggested Citation

  • Battistin, Erich & Vuri, Daniela & Angrist, Josh, 2016. "In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno," CEPR Discussion Papers 11666, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11666
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP11666
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anders Böhlmark & Mikael Lindahl, 2015. "Independent Schools and Long-run Educational Outcomes: Evidence from Sweden's Large-scale Voucher Reform," Economica, London School of Economics and Political Science, vol. 82(327), pages 508-551, July.
    2. Brunello, Giorgio & Checchi, Daniele, 2005. "School quality and family background in Italy," Economics of Education Review, Elsevier, vol. 24(5), pages 563-577, October.
    3. Andrea Ichino & Giovanni Maggi, 2000. "Work Environment and Individual Background: Explaining Regional Shirking Differentials in a Large Italian Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 1057-1090.
    4. Joshua D. Angrist & Parag A. Pathak & Christopher R. Walters, 2013. "Explaining Charter School Effectiveness," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 1-27, October.
    5. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 497-532.
    6. Nazmul Chaudhury & Jeffrey Hammer & Michael Kremer & Karthik Muralidharan & F. Halsey Rogers, 2006. "Missing in Action: Teacher and Health Worker Absence in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 91-116, Winter.
    7. Abhijit Banerjee & Esther Duflo, 2006. "Addressing Absence," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 117-132, Winter.
    8. Hanushek, Eric A, 1995. "Interpreting Recent Research on Schooling in Developing Countries," The World Bank Research Observer, World Bank, vol. 10(2), pages 227-246, August.
    9. Miguel Urquiola & Eric Verhoogen, 2009. "Class-Size Caps, Sorting, and the Regression-Discontinuity Design," American Economic Review, American Economic Association, vol. 99(1), pages 179-215, March.
    10. Derek Neal, 2013. "The Consequences of Using One Assessment System To Pursue Two Objectives," NBER Working Papers 19214, National Bureau of Economic Research, Inc.
    11. Rebecca Diamond & Petra Persson, 2016. "The Long-term Consequences of Teacher Discretion in Grading of High-stakes Tests," NBER Working Papers 22207, National Bureau of Economic Research, Inc.
    12. 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, President and Fellows of Harvard College, vol. 126(4), pages 1593-1660.
    13. Brian A. Jacob & Steven D. Levitt, 2003. "Rotten Apples: An Investigation of the Prevalence and Predictors of Teacher Cheating," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 843-877.
    14. Caroline M. Hoxby, 2000. "The Effects of Class Size on Student Achievement: New Evidence from Population Variation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1239-1285.
    15. Battistin, Erich & De Nadai, Michele & Vuri, Daniela, 2017. "Counting rotten apples: Student achievement and score manipulation in Italian elementary Schools," Journal of Econometrics, Elsevier, vol. 200(2), pages 344-362.
    16. Robert J. Gary-Bobo & Mohamed-Badrane Mahjoub, 2013. "Estimation of Class-Size Effects, Using "Maimonides' Rule" and Other Instruments: the Case of French Junior High Schools," Annals of Economics and Statistics, GENES, issue 111-112, pages 193-225.
    17. Edwin Leuven & Hessel Oosterbeek & Marte Rønning, 2008. "Quasi‐experimental Estimates of the Effect of Class Size on Achievement in Norway," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 663-693, December.
    18. Arthur Lewbel, 2007. "Estimation of Average Treatment Effects with Misclassification," Econometrica, Econometric Society, vol. 75(2), pages 537-551, March.
    19. Thomas J. Kane & Cecilia Elena Rouse & Douglas Staiger, 1999. "Estimating Returns to Schooling When Schooling is Misreported," NBER Working Papers 7235, National Bureau of Economic Research, Inc.
    20. Simon Burgess & Ellen Greaves, 2013. "Test Scores, Subjective Assessment, and Stereotyping of Ethnic Minorities," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 535-576.
    21. repec:adr:anecst:y:2013:i:111-112:p:8 is not listed on IDEAS
    22. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    23. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 933-959.
    24. Mauro Costantini & Claudio Lupi, 2006. "Divergence and long-run equilibria in Italian regional unemployment," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 899-904.
    25. Ichino, Andrea & Tabellini, Guido, 2014. "Freeing the Italian school system," Labour Economics, Elsevier, vol. 30(C), pages 113-128.
    26. Rosario Maria Ballatore & Margherita Fort & Andrea Ichino, 2018. "Tower of Babel in the Classroom: Immigrants and Natives in Italian Schools," Journal of Labor Economics, University of Chicago Press, vol. 36(4), pages 885-921.
    27. Thomas S. Dee & Will Dobbie & Brian A. Jacob & Jonah Rockoff, 2019. "The Causes and Consequences of Test Score Manipulation: Evidence from the New York Regents Examinations," American Economic Journal: Applied Economics, American Economic Association, vol. 11(3), pages 382-423, July.
    28. Bertoni, Marco & Brunello, Giorgio & Rocco, Lorenzo, 2013. "When the cat is near, the mice won't play: The effect of external examiners in Italian schools," Journal of Public Economics, Elsevier, vol. 104(C), pages 65-77.
    29. Hans Bonesrønning, 2003. "Class Size Effects on Student Achievement in Norway: Patterns and Explanations," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 952-965, April.
    30. Andrew Postlewaite, 2010. "Social Norms and Preferences, Chapter for the Handbook for Social Economics, Edited by J. Benhabib, A. Bisin and M. Jackson," PIER Working Paper Archive 10-031, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    31. Maria De Paola & Vincenzo Scoppa & Valeria Pupo, 2014. "Absenteeism in the Italian Public Sector: The Effects of Changes in Sick Leave Policy," Journal of Labor Economics, University of Chicago Press, vol. 32(2), pages 337-360.
    32. Aprajit Mahajan, 2006. "Identification and Estimation of Regression Models with Misclassification," Econometrica, Econometric Society, vol. 74(3), pages 631-665, May.
    33. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2009. "Are Teacher Absences Worth Worrying About in the United States?," Education Finance and Policy, MIT Press, vol. 4(2), pages 115-149, April.
    34. Ichino, Andrea & Ichino, Pietro, 1997. "Culture, Discrimination and Individual Productivity: Regional Evidence from Personnel Data in a Large Italian Firm," CEPR Discussion Papers 1709, C.E.P.R. Discussion Papers.
    35. Thomas J. Kane & Cecilia Rouse & Douglas Staiger, 1999. "Estimating Returns to Schooling When Schooling is Misreported," Working Papers 798, Princeton University, Department of Economics, Industrial Relations Section..
    36. Derek Neal, 2013. "The Consequences of Using one Assessment System to Pursue two Objectives," The Journal of Economic Education, Taylor & Francis Journals, vol. 44(4), pages 339-352, October.
    37. Simone Dobbelsteen & Jesse Levin & Hessel Oosterbeek, 2002. "The causal effect of class size on scholastic achievement: distinguishing the pure class size effect from the effect of changes in class composition," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(1), pages 17-38, February.
    38. Ludger Wößmann, 2005. "Educational production in Europe [‘Does class size matter?’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(43), pages 446-504.
    39. Abadie A., 2002. "Bootstrap Tests for Distributional Treatment Effects in Instrumental Variable Models," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 284-292, March.
    40. Robert J. Gary‐bobo & Badrane Mohamed Mahjoub, 2013. "Estimation of Class-Size Effects, Using "Maimonides' Rule" and Other Instruments: The Case of French Junior High Schools," Post-Print hal-03565399, HAL.
    41. David Sims, 2008. "A strategic response to class size reduction: Combination classes and student achievement in California," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(3), pages 457-478.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mangiavacchi, Lucia & Piccoli, Luca & Pieroni, Luca, 2021. "Fathers matter: Intrahousehold responsibilities and children's wellbeing during the COVID-19 lockdown in Italy," Economics & Human Biology, Elsevier, vol. 42(C).
    2. Moti Michaeli & Marco Casari & Andrea Ichino & Maria De Paola & Ginevra Marandola & Vincenzo Scoppa, 2023. "Civicness Drain," The Economic Journal, Royal Economic Society, vol. 133(649), pages 323-354.
      • Ichino, Andrea & Casari, Marco & Michaeli, Moti & De Paola, Maria & Marandola, Ginevra & Scoppa, Vincenzo, 2018. "Civicness drain," CEPR Discussion Papers 13311, C.E.P.R. Discussion Papers.
      • Casari, Marco & Ichino, Andrea & Michaeli, Moti & De Paola, Maria & Marandola, Ginevra & Scoppa, Vincenzo, 2018. "Civicness Drain," IZA Discussion Papers 11955, Institute of Labor Economics (IZA).
    3. Machin, Stephen & McNally, Sandra & Ruiz-Valenzuela, Jenifer, 2020. "Entry through the narrow door: The costs of just failing high stakes exams," Journal of Public Economics, Elsevier, vol. 190(C).
    4. Battistin, Erich & De Nadai, Michele & Vuri, Daniela, 2017. "Counting rotten apples: Student achievement and score manipulation in Italian elementary Schools," Journal of Econometrics, Elsevier, vol. 200(2), pages 344-362.
    5. Mike Gilraine & Hugh Macartney & Rob McMillan, 2018. "Education Reform in General Equilibrium: Evidence from California's Class Size Reduction," Working Papers tecipa-594, University of Toronto, Department of Economics.
    6. Michael Gilraine & Hugh Macartney & Robert McMillan, 2020. "Estimating the Direct and Indirect Effects of Major Education Reforms," Working Papers tecipa-673, University of Toronto, Department of Economics.
    7. Matej Opatrny & Tomas Havranek & Zuzana Irsova & Milan Scasny, 2023. "Publication Bias and Model Uncertainty in Measuring the Effect of Class Size on Achievement," Working Papers IES 2023/19, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2023.
    8. Marco Bertoni & Giorgio Brunello & Marco Alberto De Benedetto & Maria De Paola, 2019. "External Monitors And Score Manipulation In Italian Schools: Symptomatic Treatment Or Cure?," Working Papers 201907, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    9. Anelli, Massimo & Colussi, Tommaso & Ichino, Andrea, 2021. "Aversion to Breaking Rules and Migration," IZA Discussion Papers 14286, Institute of Labor Economics (IZA).
    10. Michael Gilraine & Hugh Macartney & Robert McMillan, 2018. "Estimating the Direct and Indirect Effects of Major Education Reforms," NBER Working Papers 24191, National Bureau of Economic Research, Inc.
    11. Belmonte, Alessandro & Bove, Vincenzo & D’Inverno, Giovanna & Modica, Marco, 2020. "School infrastructure spending and educational outcomes: Evidence from the 2012 earthquake in Northern Italy," Economics of Education Review, Elsevier, vol. 75(C).
    12. José Montalbán, 2023. "Countering Moral Hazard in Higher Education: The Role of Performance Incentives in Need-Based Grants," The Economic Journal, Royal Economic Society, vol. 133(649), pages 355-389.
    13. Mariagrazia Cavallo & Giuseppe Russo, 2020. "Reading Performance and Math Performance of Second-Generation Children in Italy," CSEF Working Papers 554, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    14. Giorgio Brunello & Angela Crema & Lorenzo Rocco, 2021. "Some Unpleasant Consequences of Testing at Length," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 1002-1023, August.
    15. Cavalieri, Marina & Finocchiaro Castro, Massimo & Guccio, Calogero, 2023. "Organised crime and educational outcomes in Southern Italy: An empirical investigation," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    16. Checchi, Daniele & De Paola, Maria, 2018. "The effect of multigrade classes on cognitive and non- cognitive skills. Causal evidence exploiting minimum class size rules in Italy✰," Economics of Education Review, Elsevier, vol. 67(C), pages 235-253.
    17. Bertoni, Marco & Brunello, Giorgio & De Benedetto, Marco Alberto & De Paola, Maria, 2021. "Does monitoring deter future cheating? The case of external examiners in Italian schools," Economics Letters, Elsevier, vol. 201(C).
    18. Aparicio Fenoll, Ainoa, 2021. "The best in the class," Economics of Education Review, Elsevier, vol. 84(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2014. "In a Small Moment: Class Size and Moral Hazard in the Mezzogiorno," FBK-IRVAPP Working Papers 2014-04, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    2. Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2014. "In a Small Moment: Class Size and Moral Hazard in the Mezzogiorno," NBER Working Papers 20173, National Bureau of Economic Research, Inc.
    3. Battistin, Erich & De Nadai, Michele & Vuri, Daniela, 2017. "Counting rotten apples: Student achievement and score manipulation in Italian elementary Schools," Journal of Econometrics, Elsevier, vol. 200(2), pages 344-362.
    4. Maximilian Bach & Stephan Sievert, 2019. "Birth Cohort Size Variation and the Estimation of Class Size Effects," Discussion Papers of DIW Berlin 1817, DIW Berlin, German Institute for Economic Research.
    5. Gian Paolo Barbetta & Giuseppe Sorrenti & Gilberto Turati, 2021. "Multigrading and Child Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 940-968.
    6. Joshua D. Angrist & Victor Lavy & Jetson Leder-Luis & Adi Shany, 2019. "Maimonides' Rule Redux," American Economic Review: Insights, American Economic Association, vol. 1(3), pages 309-324, December.
    7. Marco Bertoni & Giorgio Brunello & Marco Alberto De Benedetto & Maria De Paola, 2019. "External Monitors And Score Manipulation In Italian Schools: Symptomatic Treatment Or Cure?," Working Papers 201907, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    8. Christopher Jepsen, 2015. "Class size: Does it matter for student achievement?," IZA World of Labor, Institute of Labor Economics (IZA), pages 190-190, September.
    9. Ludger Wößmann, 2003. "European education production functions: what makes a difference for student achievement in Europe?," European Economy - Economic Papers 2008 - 2015 190, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    11. Kedagni, Desire & Krishna, Kala & Megalokonomou, Rigissa & Zhao, Yingyan, 2021. "Does class size matter? How, and at what cost?," European Economic Review, Elsevier, vol. 133(C).
    12. Adrien Bouguen & Julien Grenet & Marc Gurgand, 2017. "La taille des classes influence-t-elle la réussite scolaire ?," Post-Print hal-02453596, HAL.
    13. Torberg Falch & Astrid Marie Jorde Sandsør & Bjarne Strøm, 2017. "Do Smaller Classes Always Improve Students’ Long-run Outcomes?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 654-688, October.
    14. Adrien Bouguen & Julien Grenet & Marc Gurgand, 2017. "La taille des classes influence-t-elle la réussite scolaire ?," Post-Print hal-02453596, HAL.
    15. Masakazu Hojo, 2011. "Education Production Function and Class-Size Effects in Japanese Public Schools," Global COE Hi-Stat Discussion Paper Series gd11-194, Institute of Economic Research, Hitotsubashi University.
    16. Vegas, E & Ganimian, A. J., 2013. "Theory and Evidence on Teacher Policies in Developed and Developing Countries," Working Paper 104291, Harvard University OpenScholar.
    17. Hinnerich, Björn Tyrefors & Vlachos, Jonas, 2017. "The impact of upper-secondary voucher school attendance on student achievement. Swedish evidence using external and internal evaluations," Labour Economics, Elsevier, vol. 47(C), pages 1-14.
    18. Erich Battistin, 2016. "How manipulating test scores affects school accountability and student achievement," IZA World of Labor, Institute of Labor Economics (IZA), pages 295-295, September.
    19. Cornelisz, Ilja & Meeter, Martijn & van Klaveren, Chris, 2019. "Educational equity and teacher discretion effects in high stake exams," Economics of Education Review, Elsevier, vol. 73(C).
    20. Ulrik Hvidman & Hans Henrik Sievertsen, 2021. "High-Stakes Grades and Student Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 821-849.

    More about this item

    Keywords

    Test scores; Education production; Regression discontinuity;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:11666. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.