Using Compulsory Mobility to Identify School Quality and Peer Effects

22 Pages Posted: 6 Jul 2015

See all articles by Francis Kramarz

Francis Kramarz

Independent

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); London School of Economics & Political Science (LSE) - Department of Economics

Amine Ouazad

HEC Montréal

Date Written: August 2015

Abstract

Education production functions that feature school and student fixed effects are identified using students' school mobility. However, student mobility is driven by factors like parents' labour market shocks and divorce. Movers experience large achievement drops, are more often minority and free meal students, and sort endogenously into peer groups and school types. We exploit an English institutional feature whereby some students must change schools between grades 2 and 3. We find no evidence of endogenous sorting of such compulsory movers across peer groups or school types. Non‐compulsory movers bias school quality estimates downward by as much as 20% of a SD.

Suggested Citation

Kramarz, Francis and Machin, Stephen J. and Ouazad, Amine, Using Compulsory Mobility to Identify School Quality and Peer Effects (August 2015). Oxford Bulletin of Economics and Statistics, Vol. 77, Issue 4, pp. 566-587, 2015, Available at SSRN: https://ssrn.com/abstract=2626250 or http://dx.doi.org/10.1111/obes.12076

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Amine Ouazad

HEC Montréal ( email )

3000, ch. de la Côte-Ste-Catherine
Montréal, Quebec H3T 2A7
Canada

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