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Accounting for Student Disadvantage in Value-Added Models

Author

Listed:
  • Eric Parsons

    (Department of Economics, University of Missouri-Columbia)

  • Cory Koedel

    (Department of Economics, University of Missouri-Columbia)

  • Li Tan
Abstract
We study the relative performance of two policy relevant value-added models – a one-step fixed effect model and a two-step aggregated residuals model – using a simulated dataset well grounded in the value-added literature. A key feature of our data generating process is that student achievement depends on a continuous measure of economic disadvantage. This is a realistic condition that has implications for model performance because researchers typically have access to only a noisy, binary measure of disadvantage. We find that one- and two-step value-added models perform similarly across a wide range of student and teacher sorting conditions, with the two-step model modestly outperforming the one-step model in conditions that best match observed sorting in real data. A reason for the generally superior performance of the two-step model is that it better handles the use of an error-prone, dichotomous proxy for student disadvantage.

Suggested Citation

  • Eric Parsons & Cory Koedel & Li Tan, 2018. "Accounting for Student Disadvantage in Value-Added Models," Working Papers 1813, Department of Economics, University of Missouri.
    • Handle: RePEc:umc:wpaper:1813
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    References listed on IDEAS

    as
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    Cited by:

    1. Chiara Masci & Francesca Ieva & Tommaso Agasisti & Anna Maria Paganoni, 2021. "Evaluating class and school effects on the joint student achievements in different subjects: a bivariate semiparametric model with random coefficients," Computational Statistics, Springer, vol. 36(4), pages 2337-2377, December.
    2. Austin, Wes & Figlio, David & Goldhaber, Dan & Hanushek, Eric A. & Kilbride, Tara & Koedel, Cory & Sean Lee, Jaeseok & Lou, Jin & Özek, Umut & Parsons, Eric & Rivkin, Steven G. & Sass, Tim R. & Strunk, 2023. "Academic mobility in U.S. public schools: Evidence from nearly 3 million students," Journal of Public Economics, Elsevier, vol. 228(C).

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    More about this item

    Keywords

    Value-added modeling; two-step value-added model; value-added simulation; measurement error;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • I2 - Health, Education, and Welfare - - Education

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