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Educational Production, Endogenous Peer Group Formation and Class Composition – Evidence from the PISA 2000 Study

Author

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  • Fertig, Michael

    (ISG, Cologne)

Abstract
The majority of empirical papers in the literature on school quality finds no or only small effects of class size and other school quality measures on students' outcomes. This paper analyses the effect of achievement heterogeneity and therefore the effect of the composition rather than the pure size of the class on student achievement. In this endeavor, individuallevel data from an internationally conducted standardized test, the PISA 2000 study is utilized. For the case of US schools the influence of a student's peer group is estimated in a pure endogenous effects model and a model also allowing for contextual effects. The potential endogeneity of peer group formation is addressed in an instrumental variable approach. It turns out that heterogeneous peer groups have a strong detrimental impact on individual achievement. Moreover, it becomes transparent that contextual variables are important for the extent of peer group effects and the endogeneity of peer group formation.

Suggested Citation

  • Fertig, Michael, 2003. "Educational Production, Endogenous Peer Group Formation and Class Composition – Evidence from the PISA 2000 Study," IZA Discussion Papers 714, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp714
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    Cited by:

    1. Nicole Schneeweis & Rudolf Winter-Ebmer, 2008. "Peer effects in Austrian schools," Studies in Empirical Economics, in: Christian Dustmann & Bernd Fitzenberger & Stephen Machin (ed.), The Economics of Education and Training, pages 133-155, Springer.
    2. Xu Lin, 2010. "Identifying Peer Effects in Student Academic Achievement by Spatial Autoregressive Models with Group Unobservables," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 825-860, October.
    3. Michele Raitano & Francesco Vona, 2013. "Peer heterogeneity, school tracking and students' performances: evidence from PISA 2006," Applied Economics, Taylor & Francis Journals, vol. 45(32), pages 4516-4532, November.
    4. Masakazu Hojo, 2011. "Education Production Function and Class-Size Effects in Japanese Public Schools," Global COE Hi-Stat Discussion Paper Series gd11-194, Institute of Economic Research, Hitotsubashi University.
    5. Michaelowa, Katharina & Bourdon, Jean, 2006. "The impact of student diversity in secondary schools: An analysis of the international PISA data and implications for the German education system," HWWI Research Papers 3-2, Hamburg Institute of International Economics (HWWI).
    6. Sevda Gürsakal & Dilek Murat & Necmi Gürsakal, 2016. "Assessment of PISA 2012 Results With Quantile Regression Analysis Within The Context of Inequality In Educational Opportunity," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 4(2), pages 41-54, September.
    7. Marchionni, Mariana & Pinto, Florencia & Vazquez, Emmanuel, 2013. "Determinantes de la desigualdad en el desempeño educativo en la Argentina [Determinants of the inequality in PISA test scores in Argentina]," MPRA Paper 56421, University Library of Munich, Germany.
    8. Antonio di Paolo & Alvaro Choi, 2014. "School Composition Effects in Spain: Accounting for Intercept and Slope Effects," Hacienda Pública Española / Review of Public Economics, IEF, vol. 210(3), pages 57-83, September.
    9. Andy Dickerson & Konstantina Maragkou & Steven McIntosh, 2018. "The causal effect of secondary school peers on educational aspirations," CVER Research Papers 017, Centre for Vocational Education Research.
    10. Lionel Perini, 2012. "Peer effects and school design: An analysis of efficiency and equity," IRENE Working Papers 12-01, IRENE Institute of Economic Research.

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    More about this item

    Keywords

    peer group effects; learning environment; school quality;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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