The Choice Between Fixed and Random Effects Models: Some Considerations for Educational Research

Paul Clarke (), Claire Crawford (), Fiona Steele () and Anna Vignoles
Additional contact information
Paul Clarke: University of Bristol
Claire Crawford: University of Warwick
Fiona Steele: University of Bristol

No 5287, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We discuss fixed and random effects models in the context of educational research and set out the assumptions behind the two approaches. To illustrate the issues, we analyse the determinants of pupil achievement in primary school, using data from the Avon Longitudinal Study of Parents and Children. We conclude that a fixed effects approach will be preferable in scenarios where the primary interest is in policy-relevant inference of the effects of individual characteristics, but the process through which pupils are selected into schools is poorly understood or the data are too limited to adjust for the effects of selection. In this context, the robustness of the fixed effects approach to the random effects assumption is attractive, and educational researchers should consider using it, even if only to assess the robustness of estimates obtained from random effects models. When the selection mechanism is fairly well understood and the researcher has access to rich data, the random effects model should be preferred because it can produce policy-relevant estimates while allowing a wider range of research questions to be addressed. Moreover, random effects estimators of regression coefficients and shrinkage estimators of school effects are more statistically efficient than those for fixed effects.

Keywords: fixed effects; random effects; multilevel modelling; education; pupil achievement (search for similar items in EconPapers)
JEL-codes: C52 I21 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2010-10
New Economics Papers: this item is included in nep-edu and nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (36)

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Working Paper: The Choice between fixed and random effects models: some considerations for educational research (2010)
Working Paper: The choice between fixed and random effects models: some considerations for educational research (2010)
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