American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno
American Economic Journal: Applied Economics
vol. 9,
no. 4, October 2017
(pp. 216–49)
Abstract
Instrumental variables (IV) estimates show strong class-size effects in Southern Italy. But Italy's Mezzogiorno is distinguished by manipulation of standardized test scores as well as by economic disadvantage. IV estimates suggest small classes increase manipulation. We argue that score manipulation is a consequence of teacher shirking. IV estimates of a causal model for achievement as a function of class size and score manipulation show that class-size effects on measured achievement are driven entirely by the relationship between class size and manipulation. These results illustrate how consequential score manipulation can arise even in assessment systems with few accountability concerns.Citation
Angrist, Joshua D., Erich Battistin, and Daniela Vuri. 2017. "In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno." American Economic Journal: Applied Economics, 9 (4): 216–49. DOI: 10.1257/app.20160267Additional Materials
JEL Classification
- D82 Asymmetric and Private Information; Mechanism Design
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I26 Returns to Education
- I28 Education: Government Policy
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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