Using shocks to school enrollment to estimate the effect of school size on student achievement
Economics of Education Review Volume 25, Number 1 ISSN 0272-7757 Publisher: Elsevier Ltd
Previous studies of the connection between school enrollment size and student achievement use cross-sectional econometric models and thus do not account for unobserved heterogeneity across schools. To address this concern, I utilize school-level panel data, and generate first-differences estimates of the effect of school size on achievement. Moreover, to account for the possibility that trends in both achievement and enrollment size are jointly determined, I exploit shocks to enrollment provided by school openings, closings, and mergers in a two-stage-least-squares estimation. The results suggest that smaller schools increase both math scores and attendance rates and that the benefit of smaller schools outweigh the cost.
Kuziemko, I. Using shocks to school enrollment to estimate the effect of school size on student achievement. Economics of Education Review, 25(1), 63-75. Elsevier Ltd.