Peer effects and measurement error: the impact of sampling variation in school survey data
Investigation of peer effects on achievement with sample survey data on schools may mean that only a random sample of peers is observed for each individual. This generates classical measurement error in peer variables, resulting in the estimated peer group effects in a regression model being biased towards zero under OLS model fitting. We investigate the problem using survey data for England from the Programme for International Student Assessment (PISA) linked to administrative microdata recording information for each PISA sample member's entire year cohort. We calculate a peer group measure based on these complete data and compare its use with a variable based on peers in just the PISA sample. The estimated attenuation bias in peer effect estimates based on the PISA data alone is substantial.
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- Nicole Schneeweis & Rudolf Winter-Ebmer, 2005.
"Peer effects in Austrian schools,"
Economics working papers
2005-02, Department of Economics, Johannes Kepler University Linz, Austria.
- Schütz, Gabriela & Ursprung, Heinrich W. & Woessmann, Ludger, 2005.
"Education Policy and Equality of Opportunity,"
IZA Discussion Papers
1906, Institute for the Study of Labor (IZA).
- Gabriela Schütz & Heinrich Ursprung & Ludger Woessmann, 2005. "Education Policy and Equality of Opportunity," CESifo Working Paper Series 1518, CESifo Group Munich.
- 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.
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