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Institutional Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries

  • Wößmann, Ludger

Cross-country evidence on student achievement might be hampered byomitted country characteristics such as language or legal differences.This paper uses cross-state variation in Germany, whose sixteen statesshare the same language and legal system, but pursue different educationpolicies. Education production function models are estimated usingstate-level PISA-E data, where possible pooling three subjects and threewaves to obtain up to 138 test-score observations. The same resultsfound previously across countries hold within Germany: Higher meanstudent performance is associated with central exams, private schooloperation, and socio-economic background, but not with spending, whilehigher equality of opportunity is associated with reduced tracking. Inmodels that pool German states with OECD countries and combine up to 54state and country observations, these institutional determinants do notdiffer significantly between the sample of German states and the sampleof OECD countries, indicating that the existing cross-country evidenceis not substantially biased by unobserved country-specific factors.

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Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 19681.

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Date of creation: 2010
Date of revision:
Publication status: Published in Jahrbücher für Nationalökonomie und Statistik 2 230(2010): pp. 234-270
Handle: RePEc:lmu:muenar:19681
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  1. Wößmann, Ludger, 2007. "International evidence on school competition, autonomy, and accountability: A review," Munich Reprints in Economics 19649, University of Munich, Department of Economics.
  2. Bishop, John H. & Ludger Woessmann, 2002. "Institutional Effects in a Simple Model of Educational Production," Royal Economic Society Annual Conference 2002 29, Royal Economic Society.
  3. Hendrik Jürges & Wolfram F. Richter & Kerstin Schneider, 2004. "Teacher Quality and Incentives: Theoretical and Empirical Effects of Standards on Teacher Quality," CESifo Working Paper Series 1296, CESifo Group Munich.
  4. Hendrik Jürges & Kerstin Schneider & Felix Büchel, 2003. "The Effect of Central Exit Examinations on Student Achievement: Quasi-experimental Evidence from TIMSS Germany," CESifo Working Paper Series 939, CESifo Group Munich.
  5. Hanushek, E-A & Rivkin, S-G & Taylor, L-L, 1995. "Aggregation and the Estimated Effects of School Resources," RCER Working Papers 397, University of Rochester - Center for Economic Research (RCER).
  6. Ludger Wößmann, 2005. "Educational production in Europe," Economic Policy, CEPR;CES;MSH, vol. 20(43), pages 445-504, 07.
  7. Erich Gundlach & Ludger Wößmann & Jens Gmelin, 1999. "The Decline of Schooling Productivity in OECD Countries," Kiel Working Papers 926, Kiel Institute for the World Economy.
  8. Ludger Woessmann, 2009. "International Evidence on School Tracking: A Review," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 7(1), pages 26-34, 04.
  9. Fuchs, Thomas & Woessmann, Ludger, 2004. "What Accounts for International Differences in Student Performance? A Re-Examination Using PISA Data," IZA Discussion Papers 1287, Institute for the Study of Labor (IZA).
  10. Fertig, Michael & Wright, Robert E., 2004. "School Quality, Educational Attainment and Aggregation Bias," IZA Discussion Papers 994, Institute for the Study of Labor (IZA).
  11. Jong-Wha Lee & Robert J. Barro, 1997. "Schooling Quality in a Cross Section of Countries," NBER Working Papers 6198, National Bureau of Economic Research, Inc.
  12. Schütz, Gabriela & Ursprung, Heinrich W. & Wößmann, Ludger, 2008. "Education policy and equality of opportunity," Munich Reprints in Economics 19901, University of Munich, Department of Economics.
  13. Ammermüller, Andreas, 2005. "Educational Opportunities and the Role of Institutions," ZEW Discussion Papers 05-44, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  14. Bauer, Philipp & Riphahn, Regina T., 2006. "Timing of school tracking as a determinant of intergenerational transmission of education," Economics Letters, Elsevier, vol. 91(1), pages 90-97, April.
  15. Andrei Shleifer, 1998. "State Versus Private Ownership," Harvard Institute of Economic Research Working Papers 1841, Harvard - Institute of Economic Research.
  16. Martin R. West & Ludger Woessmann, 2010. "'Every Catholic Child in a Catholic School': Historical Resistance to State Schooling, Contemporary Private Competition and Student Achievement across Countries," Economic Journal, Royal Economic Society, vol. 120(546), pages F229-F255, 08.
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