Class size and sorting in market equilibrium theory and evidence

This paper examines how schools choose class size and how households sort in response to those choices. Focusing on the highly liberalized Chilean education market, we develop a model in which schools are heterogeneous in an underlying productivity parameter, class size is a component of school qual...

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Hauptverfasser: Urquiola Soux, Miguel (VerfasserIn), Verhoogen, Eric (VerfasserIn)
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Sprache:English
Veröffentlicht: Cambridge 2007
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spelling Urquiola Soux, Miguel Verfasser (DE-588)12855214X aut
Class size and sorting in market equilibrium theory and evidence Miguel Urquiola and Eric Verhoogen
Cambridge 2007
1 Online-Ressource
txt rdacontent
c rdamedia
cr rdacarrier
NBER Working Paper No. 13303
This paper examines how schools choose class size and how households sort in response to those choices. Focusing on the highly liberalized Chilean education market, we develop a model in which schools are heterogeneous in an underlying productivity parameter, class size is a component of school quality, households are heterogeneous in income and hence willingness to pay for school quality, and schools are subject to a class-size cap. The model offers an explanation for two distinct empirical patterns observed among private schools that accept government vouchers: (i) There is an inverted-U relationship between class size and household income in equilibrium, which will tend to bias cross-sectional estimates of the effect of class size on student performance. (ii) Some schools at the class size cap adjust prices (or enrollments) to avoid adding another classroom, which produces stacking at enrollments that are multiples of the class size cap. This generates discontinuities in the relationship between enrollment and household characteristics at those points, violating the assumptions underlying regression-discontinuity (RD) research designs. This result suggests that caution is warranted in applying the RD approach in settings in which parents have substantial school choice and schools are free to set prices and influence their enrollments.
Class size Economic aspects Chile
Klassenstärke (DE-588)4073469-9 gnd rswk-swf
Schule (DE-588)4053474-1 gnd rswk-swf
Schule (DE-588)4053474-1 s
Klassenstärke (DE-588)4073469-9 s
DE-604
Verhoogen, Eric Verfasser (DE-588)133565262 aut
National Bureau of Economic Research Sonstige (DE-588)39157-8 oth
http://www.nber.org/papers/w13303.pdf?new_window=1 Volltext
spellingShingle Urquiola Soux, Miguel
Verhoogen, Eric
Class size and sorting in market equilibrium theory and evidence
Class size Economic aspects Chile
Klassenstärke (DE-588)4073469-9 gnd
Schule (DE-588)4053474-1 gnd
subject_GND (DE-588)4073469-9
(DE-588)4053474-1
title Class size and sorting in market equilibrium theory and evidence
title_auth Class size and sorting in market equilibrium theory and evidence
title_exact_search Class size and sorting in market equilibrium theory and evidence
title_full Class size and sorting in market equilibrium theory and evidence Miguel Urquiola and Eric Verhoogen
title_fullStr Class size and sorting in market equilibrium theory and evidence Miguel Urquiola and Eric Verhoogen
title_full_unstemmed Class size and sorting in market equilibrium theory and evidence Miguel Urquiola and Eric Verhoogen
title_short Class size and sorting in market equilibrium
title_sort class size and sorting in market equilibrium theory and evidence
title_sub theory and evidence
topic Class size Economic aspects Chile
Klassenstärke (DE-588)4073469-9 gnd
Schule (DE-588)4053474-1 gnd
topic_facet Class size Economic aspects Chile
Klassenstärke
Schule
url http://www.nber.org/papers/w13303.pdf?new_window=1
work_keys_str_mv AT urquiolasouxmiguel classsizeandsortinginmarketequilibriumtheoryandevidence
AT verhoogeneric classsizeandsortinginmarketequilibriumtheoryandevidence
AT nationalbureauofeconomicresearch classsizeandsortinginmarketequilibriumtheoryandevidence