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In a Small Moment: Class Size and Moral Hazard in the Mezzogiorno

Author

Listed:
  • Joshua D. Angrist

    (MIT, IZA and NBER)

  • Erich Battistin

    (Queen Mary University of London, IRVAPP and IZA)

  • Daniela Vuri

    (University of Rome Tor Vergata, CEIS, CESifo and IZA)

Abstract
An instrumental variables (IV) identification strategy that exploits statutory class size caps shows significant achievement gains in smaller classes in Italian primary schools. Gains from small classes are driven mainly by schools in Southern Italy, suggesting a substantial return to class size reductions for residents of the Mezzogiorno. In addition to high unemployment and other social problems, however, the Mezzogiorno is distinguished by pervasive manipulation of standardized test scores, a finding revealed in a natural experiment that randomly assigns school monitors. IV estimates also show that small classes increase score manipulation. Dishonest scoring appears to be a consequence of teacher shirking in grade transcription, rather than cheating by either students or teachers. Estimates of a causal model for achievement with two endogenous variables, class size and score manipulation, suggest that the effects of class size on measured achievement are driven entirely by the relationship between class size and manipulation. These findings show how consequential score manipulation can arise even in assessment systems with few NCLB-style accountability concerns.

Suggested Citation

  • Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2015. "In a Small Moment: Class Size and Moral Hazard in the Mezzogiorno," Working Papers 747, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:747
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    Cited by:

    1. Torberg Falch & Astrid Marie Jorde Sandsør & Bjarne Strøm, 2017. "Do Smaller Classes Always Improve Students’ Long-run Outcomes?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 654-688, October.
    2. Ricardo Estrada, 2019. "Rules versus Discretion in Public Service: Teacher Hiring in Mexico," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 545-579.
    3. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    4. Battistin, Erich & De Nadai, Michele & Vuri, Daniela, 2017. "Counting rotten apples: Student achievement and score manipulation in Italian elementary Schools," Journal of Econometrics, Elsevier, vol. 200(2), pages 344-362.
    5. Bertoni, Marco & Brunello, Giorgio & De Benedetto, Marco Alberto & De Paola, Maria, 2019. "External Monitors and Score Manipulation in Italian Schools: Symptomatic Treatment or Cure?," IZA Discussion Papers 12591, Institute of Labor Economics (IZA).
    6. Contini, Dalit & Tommaso, Maria Laura Di & Mendolia, Silvia, 2017. "The gender gap in mathematics achievement: Evidence from Italian data," Economics of Education Review, Elsevier, vol. 58(C), pages 32-42.
    7. Battistin, Erich & Meroni, Elena Claudia, 2016. "Should we increase instruction time in low achieving schools? Evidence from Southern Italy," Economics of Education Review, Elsevier, vol. 55(C), pages 39-56.
    8. Lucifora, Claudio & Tonello, Marco, 2015. "Cheating and social interactions. Evidence from a randomized experiment in a national evaluation program," Journal of Economic Behavior & Organization, Elsevier, vol. 115(C), pages 45-66.

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    More about this item

    Keywords

    Test scores; Education production; Regression discontinuity;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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