Class Size and the Regression Discontinuity Design: The Case of Public Schools

Danny Cohen-Zada (), Mark Gradstein () and Ehud Reuven
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Danny Cohen-Zada: Ben Gurion University
Mark Gradstein: Ben Gurion University
Ehud Reuven: Ben Gurion University

No 4679, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using a rich individual-level dataset on secondary public schools in Israel, we find strong evidence for discontinuities in the relationship between enrollment and household characteristics at cutoff points induced by a maximum class size rule. Our findings extend existing work that documents such discontinuities only among private schools (Urquiola and Verhoogen, 2009). These discontinuities violate the assumptions underlying the regression discontinuity design, which are crucial for identification. Consequently, IV estimates of class size effects are likely to be seriously biased. Potential manipulation of the treatment assignment rule by public schools warrants caution in applying a regression discontinuity design to estimate class size effects and indicates that institutional context is crucial for its scope of applicability.

Keywords: regression discontinuity design; class size (search for similar items in EconPapers)
JEL-codes: I20 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2009-12
New Economics Papers: this item is included in nep-ecm, nep-lab and nep-ure
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Citations: View citations in EconPapers (3)

Published - published as 'Allocation of students in public schools: Theory and new evidence' in: Economics of Education Review, 2013, 34, 96-106

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