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The Treatment Effect of Attending a High-Quality School and the Influence of Unobservables

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  • Storck, Johanna
  • Freier, Ronny

Abstract

This paper studies the effect of attending a high-quality secondary school on subsequent educational outcomes. The analysis is based on data from the German Socio-Economic Panel Study in which we observe children when they make their secondary school choice (between ages 10-12) and later when they self-report on their intentions with regard to their further educational path (between ages 16-17). To identify the treatment effect, we use a regression-control framework as well as an instrumental variable approach (based on local supply of schools). In a second step, we carefully examine the influence of unobservable characteristics, using the new technique proposed by Altonji, Elder, and Taber (2005b). Our findings suggest that unobservable characteristics are indeed crucial to the validity of the research design. While we find large positive and significant effects of attending a high-quality school, we cannot rule out that the estimates are not in fact driven by selection on unobservables.

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File URL: https://econstor.eu/bitstream/10419/79879/1/VfS_2013_pid_111.pdf
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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79879.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79879
Contact details of provider: Web page: http://www.socialpolitik.org/
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Find related papers by JEL classification:
  • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
  • 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
  • I20 - Health, Education, and Welfare - - Education - - - General

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  1. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, 08.
  2. Eric A. Hanushek & Ludger Wößmann, 2005. "Does Education Tracking Affect Performance and Inequality? Differences-In-Differences Evidence Across Countries," Discussion Papers 04-027, Stanford Institute for Economic Policy Research.
  3. Gould, Eric D & Lavy, Victor & Paserman, M. Daniele, 2005. "Does Immigration Affect the Long-Term Educational Outcomes of Natives? Quasi-Experimental Evidence," CEPR Discussion Papers 5439, C.E.P.R. Discussion Papers.
  4. William N. Evans & Robert M. Schwab, 1995. "Finishing High School and Starting College: Do Catholic Schools Make a Difference?," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 941-974.
  5. Robert Bifulco & Jason M. Fletcher & Stephen L. Ross, 2011. "The Effect of Classmate Characteristics on Post-secondary Outcomes: Evidence from the Add Health," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 25-53, February.
  6. Frenette, Marc, 2009. "Do universities benefit local youth? Evidence from the creation of new universities," Economics of Education Review, Elsevier, vol. 28(3), pages 318-328, June.
  7. Vardardottir, Arna, 2013. "Peer effects and academic achievement: a regression discontinuity approach," Economics of Education Review, Elsevier, vol. 36(C), pages 108-121.
  8. Nicole Schneeweis & Rudolf Winter-Ebmer, 2007. "Peer effects in Austrian schools," Empirical Economics, Springer, vol. 32(2), pages 387-409, May.
  9. Denzler, Stefan & Wolter, Stefan C., 2011. "Too Far to Go? Does Distance Determine Study Choices?," IZA Discussion Papers 5712, Institute for the Study of Labor (IZA).
  10. Victor Lavy & Olmo Silva & Felix Weinhardt, 2012. "The Good, the Bad, and the Average: Evidence on Ability Peer Effects in Schools," Journal of Labor Economics, University of Chicago Press, vol. 30(2), pages 367 - 414.
  11. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 577-599.
  12. Frenette, Marc, 2002. "Too Far to Go on? Distance to School and University Participation," Analytical Studies Branch Research Paper Series 2002191e, Statistics Canada, Analytical Studies Branch.
  13. Falch, Torberg & Lujala, Päivi & Strøm, Bjarne, 2013. "Geographical constraints and educational attainment," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 164-176.
  14. Spiess, C. Katharina & Wrohlich, Katharina, 2010. "Does distance determine who attends a university in Germany?," Economics of Education Review, Elsevier, vol. 29(3), pages 470-479, June.
  15. Andreas Ammermueller & Jörn-Steffen Pischke, 2009. "Peer Effects in European Primary Schools: Evidence from the Progress in International Reading Literacy Study," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 315-348, 07.
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Cited by:

  1. Schumann, Mathias & Freier, Ronny & Siedler, Thomas, 2014. "The Economic Returns to Graduating with Honors - Evidence from Law Graduates," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100338, Verein für Socialpolitik / German Economic Association.
  2. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany – Heterogeneous Eff ects and Skill Formation," Ruhr Economic Papers 0446, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany: Heterogeneous Effects and Skill Formation," SOEPpapers on Multidisciplinary Panel Data Research 598, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Freier, Ronny & Schumann, Mathias & Siedler, Thomas, 2015. "The earnings returns to graduating with honors — Evidence from law graduates," Labour Economics, Elsevier, vol. 34(C), pages 39-50.
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