nep-edu New Economics Papers
on Education
Issue of 2009‒06‒03
fourteen papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. The Effect of Classmate Characteristics on Individual Outcomes: Evidence from the Add Health By Robert Bifulco; Jason M. Fletcher; Stephen L. Ross
  2. Migrants at School: Educational Inequality and Social Interaction in the UK and Germany By Entorf, Horst; Tatsi, Eirini
  3. Assortative Mating by Ethnic Background and Education in Sweden: The Role of Parental Composition on Partner Choice By Aycan, Çelikaksoy; Lena, Nekby; Saman, Rashid
  4. The Impact of Parental Education on Earnings: New Wine in an Old Bottle? By Hudson, John; Sessions, John G.
  5. Some considerations on the impact of the introduction ict in the educational system By Mariana Nicolae-Balan
  6. The Simulation of the Educational Output over the Life Course: The GAMEO Model By Pierre Courtioux; Stéphane Gregoir; Dede Houeto
  7. Marijuana Consumption, Educational Outcomes and Labor Market Success: Evidence from Switzerland By Donata Bessey; Uschi Backes-Gellner
  8. How Linear Models Can Mask Non-Linear Causal Relationships. An Application to Family Size and Children's Education By Magne Mogstad and Matthew Wiswall
  9. School accountability laws and the consumption of psychostimulants By Farasat A.S. Bokhari; Helen Schnedier
  10. Risk Attitudes and Wage Growth : Replication and Reconstruction By Santi Budria; Luis Diaz-Serrano; Ada Ferrer-i-Carbonell; Joop Hartog
  11. Behavioral Assumptions and Management Ability: A Tentative Test By Benito Arruñada; Xosé H. Vázquez
  12. The important role of extension systems: By Davis, Kristin E.
  13. The Impact of Demographic Change on Human Capital Accumulation By Fertig, Michael; Schmidt, Christoph M.; Sinning, Mathias
  14. Teaching Opportunity Cost in an Emissions Permit Experiment By Mandell, Svante; Holt, Chrles; Myers, Erica; Burtraw, Dallas; Wråke, Markus

  1. By: Robert Bifulco (Syracuse University); Jason M. Fletcher (Yale University); Stephen L. Ross (University of Connecticut)
    Abstract: We use data from the National Longitudinal Study of Adolescent Health (Add Health) to examine the effects of classmate characteristics on economic and social outcomes of students. The unique structure of the Add Health allows us to estimate these effects using comparisons across cohorts within schools, and to examine a wider range of outcomes than other studies that have used this identification strategy. This strategy yields variation in cohort composition that is uncorrelated with student observables suggesting that our estimates are not biased by the selection of students into schools or grades based on classmate characteristics. We find that increases in the percent of classmates whose mother is college educated has significant, desirable effects on educational attainment and substance use. We find no evidence that in-school achievement, student attitudes, or behaviors serve as mechanisms for this effect. The percent of students from disadvantaged minority groups does not show any negative effects on the post-secondary outcomes we examine, but is associated with students reporting less caring student-teacher relationships and increased prevalence of some undesirable student behaviors during high school.
    Keywords: Education, Peer Effects, Cohort Study, Substance Abuse
    JEL: I21 I19 J13 J15
    Date: 2009–06
  2. By: Entorf, Horst (University of Frankfurt); Tatsi, Eirini (University of Frankfurt)
    Abstract: We test potential social costs of educational inequality by analysing the influence of spatial and social segregation on educational achievements. In particular, based on recent PISA data sets from the UK and Germany, we investigate whether good neighbourhoods with a relatively high stock of social capital lead to larger 'social multipliers' than neighbourhoods with low social capital. Estimated 'social multipliers' are higher for the German early tracking schooling system than for comprehensive schools in the UK. After aggregating data and employing the Oaxaca-Blinder decomposition, the results suggest that the educational gap between natives and migrants is mainly due to the 'endowment effect' provided by the socioeconomic background of parents and cultural capital at home. Some adverse 'integration effects' do exist for female migrants in Germany who lose ground on other groups.
    Keywords: peer effects, identification, social interaction, reflection problem, empirical analysis, education, migrants
    JEL: I20 J15 J18 O15 Z13
    Date: 2009–05
  3. By: Aycan, Çelikaksoy (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Lena, Nekby (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Saman, Rashid (Stockholm University Linnaeus Center for Integration Studies - SULCIS)
    Abstract: Assortative mating patterns in two dimensions namely, ethnic background and education are analysed in this paper for individuals with an immigrant background living in Sweden. We focus on the role of individual and spousal characteristics as well as the role of parental composition on partnership formation. Results indicate that assorative mating by ethnic background is significantly lower for second generation immigrants in comparison to first generation immigrants. In the case of assortative mating by education, although the descriptive statistics show that the proportion of educational homogamy is higher for second generation immigrants, after controlling for own and partners’ characteristics, educational homogamy is found to be significantly lower for those in the second generation. Gender differences in these patterns suggest that second generation females are significantly less likely than second generation men to be in educational homogamous partnerships relative to their first generation counterparts. In terms of parental composition, having a Swedish background (mother or father) is associated with lower ethnic endogamy, especially for first generation women. Having a Swedish background is also associated with significantly higher probabilities of educational homogamy but primarily only for first generation male immigrants.
    Keywords: Positive Assortative Mating; Immigrant Status; Ethnic Endogamy; Education Homogamy
    JEL: F22 J12 J15 J16
    Date: 2009–05–29
  4. By: Hudson, John (University of Bath); Sessions, John G. (University of Bath)
    Abstract: We examine the impact of parental education on the shape of an individual's experience-earnings profile. A number of factors suggest that parental education will affect the ability of an individual to translate labor market experience into earnings. Our empirical analysis of US data suggests that this is indeed the case. Higher parental education shifts the earnings profile significantly to the left – the profile of individuals with parents who both have 15 years of education peaks at 16 years of experience when their wages are 52% (24%) greater than those whose parents both have only 5 (10) years of education.
    Keywords: parental education, human capital, earnings
    JEL: J30 J31 J33
    Date: 2009–05
  5. By: Mariana Nicolae-Balan (Institute for Economic Forecasting-NIER, Romanian Academy, Bucharest)
    Abstract: Approximation, with fast steps, of the Information Society requires adaptation to new technologies to all sectors of activity. In this context, education has a particularly important role in stimulating the transition towards the Information Society, on the one hand, and on the other hand, should consider the orientation of the education system towards this.
    Keywords: education, Information Society, e-Learning
    JEL: I20 I23 I29
    Date: 2009–05
  6. By: Pierre Courtioux (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Stéphane Gregoir (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - CNRS : UMR7534 - Université Paris Dauphine - Paris IX); Dede Houeto (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: The paper presents the GAMEO model. It is a dynamic microsimulation model which aims at analyse educational output. It develops a generational approach and put the stress on the ditribution of educational output differentiated by type an level of degree.
    Keywords: microsimulation; education
    Date: 2009–06–08
  7. By: Donata Bessey (Institute for Strategy and Business Economics, University of Zurich); Uschi Backes-Gellner (Institute for Strategy and Business Economics, University of Zurich)
    Abstract: In this paper, we analyze the impact of onset of marijuana consumption during different periods in youth on educational outcomes and labor market success using a Swiss data set. In order to deal with endogeneity, we estimate a multivariate probit model with an instrumental variables strategy. Our results seem to suggest that onset of marijuana consumption under age 14 leads to a signicantly lower probability of having at least a secondary education, and onset of consumption between age 15 and 16 as well as between age 17 and 18 leads to a signicantly lower probability of having a tertiary education. While we do not find any impact of marijuana consumption on the probability of being unemployed, onset of marijuana consumption under age 14 and between age 15 and 16 leads to a significantly higher probability of working less than 80%.
    Keywords: Risky behavior, production of human capital, multivariate probit
    JEL: I19 I21
    Date: 2009–02
  8. By: Magne Mogstad and Matthew Wiswall (Statistics Norway)
    Abstract: Many empirical studies specify outcomes as a linear function of endogenous regressors when conducting instrumental variable (IV) estimation. We show that commonly used tests for treatment effects, selection bias, and treatment effect heterogeneity are biased if the true relationship is non-linear. In particular, using linear models can only lead to under-rejection of the null hypothesis of no treatment effects. In light of these results, we re-examine the recent evidence suggesting that family size has no causal effect on children's education. Following common practice, a linear IV estimator has been used, assuming constant marginal effects of additional children across family sizes. We show that the conclusion of no causal effect of family size is an artifact of the specification of a linear model, which masks significant marginal family size effects. Estimating a model that is non-parametric in family size, we find that family size matters substantially for children's educational attainment, but in a non-monotonic way. Our findings illustrate that IV estimation of models which relax linearity restrictions is an important addition to empirical research, particularly when OLS estimation and theory suggests the possibility of non-linear causal effects.
    Keywords: Instrumental variables; variable treatment intensity; treatment effect heterogeneity; selection bias; quantity-quality; family size; child outcome
    JEL: C31 C14 J13
    Date: 2009–05
  9. By: Farasat A.S. Bokhari (Department of Economics, Florida State University); Helen Schnedier (Department of Economics, University of Texas at Austin)
    Abstract: Over the past decade, several states introduced varying degrees of accountability systems for schools, which became federal law with the passage of the No Child Left Behind Act of 2001. The intent of these laws was to improve academic performance and to make school quality more observable. Nonetheless, schools have reacted to these pressures in several different ways, some of which were not intended. We make use of the variation across states and over time in specific provisions of these accountability laws and find that accountability laws effect medical diagnoses and subsequent treatment options of school aged children. Specifically, children in states with more stringent accountability laws are more likely to be both, diagnosed with Attention Deficit/Hyperactivity Disorder (ADHD), and consequently, prescribed psychostimulant drugs for controlling the symptoms.
    Keywords: Attention Decit Hyperactivity Disorder, ADD/ADHD, psychostimulants, school accountability laws
    JEL: I18 I28 H70
    Date: 2009–03–08
  10. By: Santi Budria; Luis Diaz-Serrano; Ada Ferrer-i-Carbonell; Joop Hartog
    Abstract: We replicate Shaw (1996) who found that individual wage growth is higher for individuals with greater preference for risk taking. Expanding her dataset with more American observations and data for Germany, Spain and Italy, we find mixed support for the earlier results. We present and estimate a new model and find that in particular the wage level is sensitive to attitudes towards risk taking.
    Keywords: wage growth, risk, post-school investment
    JEL: J24 J30
    Date: 2009
  11. By: Benito Arruñada; Xosé H. Vázquez
    Abstract: The paper explores the consequences that relying on different behavioral assumptions in training managers may have on their future performance. We argue that training with an emphasis on the standard assumptions used in economics (rationality and self-interest) leads future managers to rely excessively on rational and explicit safeguarding, crowding out instinctive contractual heuristics and signaling a ‘bad’ type to potential partners. In contrast, human assumptions used in management theories, because of their diverse, implicit and even contradictory nature, do not conflict with the innate set of cooperative tools and may provide a good training ground for such tools. We present tentative confirmatory evidence by examining how the weight given to behavioral assumptions in the core courses of the top 100 business schools influences the average salaries of their MBA graduates. Controlling for the average quality of their students and some other schools’ characteristics, average salaries are significantly greater for those schools whose core MBA courses contain a higher proportion of management courses as opposed to courses based on economics or technical disciplines.
    Keywords: Evolutionary psychology, economics, management, contractual heuristics, rationality, self-interest
    JEL: A23 B41 D01 D87 M12 M51
    Date: 2009–06
  12. By: Davis, Kristin E.
    Abstract: Climate change will certainly affect agriculture, but agriculture can also be harnessed to mitigate greenhouse gas (GHG) emissions. A key element in supporting agriculture's role is information. The costs of adapting agriculture to climate change can be large and the methods not always well known. Mitigation efforts will require information, education, and technology transfer. Agricultural extension and advisory services, both public and private, thus have a major role to play in providing farmers with information, technologies, and education on how to cope with climate change and ways to contribute to GHG mitigation. This support is especially important for resource-scarce smallholders, who contribute little to climate change and yet will be among the most affected. Support from extension for farmers in dealing with climate change should focus on two areas: adaptation and mitigation, explained below. But first, it is important to define extension.
    Keywords: Climate change, Copenhagen,
    Date: 2009
  13. By: Fertig, Michael (ISG, Cologne); Schmidt, Christoph M. (RWI Essen); Sinning, Mathias (Australian National University)
    Abstract: This paper investigates whether and to what extent demographic change has an impact on human capital accumulation. The effect of the relative cohort size on educational attainment of young adults in Germany is analyzed utilizing data from the German Socio-Economic Panel for West-German individuals of the birth cohorts 1966 to 1986. These are the cohorts which entered the labor market since the 1980's. Particular attention is paid to the effect of changes in labor market conditions, which constitute an important channel through which demographic change may affect human capital accumulation. Our findings suggest that the variables measuring demographic change exert a considerable though heterogeneous impact on the human capital accumulation of young Germans. Changing labor market conditions during the 1980's and 1990's exhibit a sizeable impact on both the highest schooling and the highest professional degree obtained by younger cohorts.
    Keywords: demographic change, schooling, vocational training
    JEL: J11 J24 C25
    Date: 2009–05
  14. By: Mandell, Svante (Swedish National Road & Transport Research Institute (VTI)); Holt, Chrles (Department of Economics, University of Virginia); Myers, Erica (Resources for the Future); Burtraw, Dallas (Resources for the Future); Wråke, Markus (IVL Swedish Environmental Institute)
    Abstract: This paper describes an individual choice experiment that can be used to teach students how to correctly account for opportunity costs in production decisions. Students play the role of producers who require a fuel input and an emissions permit for production. Given fixed market prices, they make production quantity decisions on the basis of their costs. Permits have a constant price throughout the experiment. In one treatment, students have to purchase both a fuel input and an emissions permit for each production unit. In a second treatment, they receive permits for free, and any unused permits are sold on their behalf at the permit price. If students correctly incorporate opportunity costs, they will have the same supply function in both treatments. This experiment motivates classroom discussion of opportunity costs and emissions permit allocation under cap-and-trade schemes. The European Union Emissions Trading Scheme provides a relevant example for classroom discussion, as industry earned significant windfall profits from free allocation of emissions allowances in the early phases of the program.
    Keywords: opportunity cost; emissions permits; allowance allocation; classroom experiments
    JEL: A22 C90 Q52
    Date: 2009–05–25

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