Abstract
In this paper the controversial educational topic of class size reduction is addressed. Controlling for a large number of observable characteristics and potential endogeneity in the class size variable, an educational production function is estimated using a quantile regression technique. The “conventional wisdom” that class size reduction is a viable means to increase scholastic achievement is discounted. Rather, the results point towards a far stronger peer effect through which class size reduction may play an important role. Due to heterogeneity in the newly identified peer effect, class size reduction is shown to be a potentially regressive policy measure.
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Levin, J. (2002). For whom the reductions count: A quantile regression analysis of class size and peer effects on scholastic achievement. In: Fitzenberger, B., Koenker, R., Machado, J.A.F. (eds) Economic Applications of Quantile Regression. Studies in Empirical Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-662-11592-3_11
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DOI: https://doi.org/10.1007/978-3-662-11592-3_11
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-2502-2
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