School system evaluation by value-added analysis under endogeneity

Jorge Manzi, Ernesto San Martin and Sebastien Van Bellegem ()
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Jorge Manzi: Measurement Center MIDE UC, Pontificia Universidad Católica de Chile, Chile
Ernesto San Martin: Measurement Center MIDE UC & Dep. Of Statistics, Pontificia Universidad Católica de Chile, Chile

No 2010046, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Value-added analysis is a common tool in analysing school performances. In this paper, we analyse the SIMCE panel data which provides individual scores of about 200,000 students in Chile, and whose aim is to rank schools according to their educational achievement. Based on the data collection procedure and on empirical evidences, we argue that the exogeneity of some covariates is questionable. This means that a nonvanishing correlation appears between the school-specific effect and some covariates. We show the impact of this phenomenon on the calculation of the value-added and on the ranking, and provide an estimation method that is based on instrumental variables in order to correct the bias of endogeneity. Revisiting the definition of the value-added, we propose a new calculation robust to endogeneity that we illustrate on the SIMCE data.

Keywords: value-added; school effectiveness; multilevel model; endogeneity; instrumental variables (search for similar items in EconPapers)
JEL-codes: C33 C51 I21 (search for similar items in EconPapers)
Date: 2010-07-01
New Economics Papers: this item is included in nep-ecm, nep-edu, nep-lab and nep-ure
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Related works:
Working Paper: School System Evaluation By Value-Added Analysis under Endogeneity (2010)
Working Paper: School System Evaluation By Value-Added Analysis under Endogeneity (2010)
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