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Long-Term Effects of Class Size

  • Fredriksson, Peter

    ()

    (Stockholm University)

  • Öckert, Björn

    ()

    (IFAU)

  • Oosterbeek, Hessel

    ()

    (University of Amsterdam)

This paper evaluates the long-term effects of class size in primary school. We use rich administrative 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 not only beneficial for cognitive test scores at age 13 but also for non-cognitive scores at that age, for cognitive test scores at ages 16 and 18, and for completed education and wages at age 27 to 42. The estimated effect on wages is much larger than any indirect (imputed) estimate of the wage effect, and is large enough to pass a cost-benefit test.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5879.

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Length: 31 pages
Date of creation: Jul 2011
Date of revision:
Publication status: published in: Quarterly Journal of Economics, 2013, 128 (1), 249-285
Handle: RePEc:iza:izadps:dp5879
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  1. Lorraine Dearden & Javier Ferri & Costas Meghir, 1998. "The effect of school quality on educational attainment and wages," IFS Working Papers W98/03, Institute for Fiscal Studies.
  2. Dustmann, Christian & Rajah, Najma & van Soest, Arthur, 2002. "Class Size, Education, and Wages," IZA Discussion Papers 501, Institute for the Study of Labor (IZA).
  3. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, 05.
  4. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
  5. 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.
  6. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
  7. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
  8. Alan B. Krueger, 2000. "Economic Considerations and class size," Working Papers 975, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
  9. Lindahl, Mikael, 2001. "Home versus School Learning: A New Approach to Estimating the Effect of Class Size on Achievement," IZA Discussion Papers 261, Institute for the Study of Labor (IZA).
  10. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
  11. David S. Lee & David Card, 2006. "Regression Discontinuity Inference with Specification Error," NBER Technical Working Papers 0322, National Bureau of Economic Research, Inc.
  12. Douglas Almond & Janet Currie, 2010. "Human Capital Development Before Age Five," NBER Working Papers 15827, National Bureau of Economic Research, Inc.
  13. Chetty, Raj & Friedman, John Norton & Hilger, Nathanial & Saez, Emmanuel & Schanzenbach, Dianne Whitmore & Yagan, Danny, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," Scholarly Articles 9639983, Harvard Kennedy School of Government.
  14. Lindqvist, Erik & Westman, Roine, 2009. "The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment," Working Paper Series 794, Research Institute of Industrial Economics.
  15. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
  16. Alan B. Krueger, 1999. "Experimental Estimates Of Education Production Functions," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 497-532, May.
  17. Marte Rønning & Edvin Leuven & Hessel Oosterbeek, 2008. "Quasi-experimental estimates of the effect of class size on achievement in Norway," Working Paper Series 9308, Department of Economics, Norwegian University of Science and Technology.
  18. Edward P. Lazear, 1999. "Educational Production," NBER Working Papers 7349, National Bureau of Economic Research, Inc.
  19. Caroline M. Hoxby, 2000. "The Effects Of Class Size On Student Achievement: New Evidence From Population Variation," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1239-1285, November.
  20. Miguel Urquiola, 2006. "Identifying Class Size Effects in Developing Countries: Evidence from Rural Bolivia," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 171-177, February.
  21. Carrington, William J & Troske, Kenneth R, 1997. "On Measuring Segregation in Samples with Small Units," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(4), pages 402-09, October.
  22. E Leuven & Hessel Oosterbeek & H van Ophern, 1998. "Explaining International Differences in Male Wage Inequality by differences in Demand and Supply of Skill," CEP Discussion Papers dp0392, Centre for Economic Performance, LSE.
  23. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May.
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