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Parental responses to public investments in children: Evidence from a maximum class size rule

Author

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  • Fredriksson, Peter

    (Stockholm University, IZA, IFAU, and Uppsala Center for Labor Studies (UCLS))

  • Ockert, Bjorn

    (Institute for Evaluation of Labor Market and Education Policy (IFAU) and UCLS)

  • Oosterbeek, Hessel

    (University of Amsterdam)

Abstract

We study differential parental responses to variation in class size induced by a maximum class size rule in Swedish schools. In response to an increase in class size: (i) only high- income parents help their children more with homework; (ii) all parents are more likely to move their child to another school; and (iii) only low-income children find their teachers harder to follow when taught in a larger class. These findings indicate that public and private investments in children are substitutes, and help explain why the negative effect of class size on achievement in our data is concentrated among low-income children.

Suggested Citation

  • Fredriksson, Peter & Ockert, Bjorn & Oosterbeek, Hessel, 2015. "Parental responses to public investments in children: Evidence from a maximum class size rule," Research Papers in Economics 2015:9, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:2015_0009
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    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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