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Long-term effects of class size

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This paper evaluates the long-term effects of class size in primary school. We use rich data from Sweden and exploit variation in class size created by a maximum class size rule. Smaller classes in the last three years of primary school (age 10 to 13) are beneficial for cognitive and non-cognitive ability at age 13, and improve achievement at age 16. Most importantly, we find that smaller classes have positive effects on completed education, wages, and earnings at age 27 to 42. The estimated wage effect is much larger than any imputed estimate of the wage effect, and is large enough to pass a cost-benefit test.

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  • Fredriksson, Peter & Öckert, Björn & Oosterbeek, Hessel, 2012. "Long-term effects of class size," Research Papers in Economics 2012:8, Stockholm University, Department of Economics.
  • Handle: RePEc:hhs:sunrpe:2012_0008
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    More about this item

    Keywords

    Class size; regression discontinuity; cognitive skills; non-cognitive skills; educational attainment; earnings;
    All these keywords.

    JEL classification:

    • 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

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