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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- 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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- Gabriela Schütz & Heinrich Ursprung & Ludger Woessmann, 2005. "Education Policy and Equality of Opportunity," CESifo Working Paper Series 1518, CESifo Group Munich.
- Nicole Schneeweis & Rudolf Winter-Ebmer, 2007.
"Peer effects in Austrian schools,"
Springer, vol. 32(2), pages 387-409, May.
- Schneeweis, Nicole & Winter-Ebmer, Rudolf, 2005. "Peer Effects in Austrian Schools," Economics Series 170, Institute for Advanced Studies.
- Schneeweis, Nicole & Winter-Ebmer, Rudolf, 2005. "Peer Effects in Austrian Schools," CEPR Discussion Papers 5018, C.E.P.R. Discussion Papers.
- Nicole Schneeweis & Rudolf Winter-Ebmer, 2005. "Peer effects in Austrian schools," Economics working papers 2005-02, Department of Economics, Johannes Kepler University Linz, Austria.
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