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

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  • Battistin, Erich
  • Vuri, Daniela
  • Angrist, Josh

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 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 show how consequential score manipulation can arise even in assessment systems with few accountability concerns.

Suggested Citation

  • Battistin, Erich & Vuri, Daniela & Angrist, Josh, 2016. "In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno," CEPR Discussion Papers 11666, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11666
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    3. Machin, Stephen & McNally, Sandra & Ruiz-Valenzuela, Jenifer, 2020. "Entry through the narrow door: The costs of just failing high stakes exams," Journal of Public Economics, Elsevier, vol. 190(C).
    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. Mike Gilraine & Hugh Macartney & Rob McMillan, 2018. "Education Reform in General Equilibrium: Evidence from California's Class Size Reduction," Working Papers tecipa-594, University of Toronto, Department of Economics.
    6. Michael Gilraine & Hugh Macartney & Robert McMillan, 2018. "Estimating the Direct and Indirect Effects of Major Education Reforms," NBER Working Papers 24191, National Bureau of Economic Research, Inc.
    7. Matej Opatrny & Tomas Havranek & Zuzana Irsova & Milan Scasny, 2023. "Publication Bias and Model Uncertainty in Measuring the Effect of Class Size on Achievement," Working Papers IES 2023/19, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2023.
    8. Marco Bertoni & Giorgio Brunello & Marco Alberto De Benedetto & Maria De Paola, 2019. "External Monitors And Score Manipulation In Italian Schools: Symptomatic Treatment Or Cure?," Working Papers 201907, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    9. Anelli, Massimo & Colussi, Tommaso & Ichino, Andrea, 2021. "Aversion to Breaking Rules and Migration," IZA Discussion Papers 14286, Institute of Labor Economics (IZA).
    10. Belmonte, Alessandro & Bove, Vincenzo & D’Inverno, Giovanna & Modica, Marco, 2020. "School infrastructure spending and educational outcomes: Evidence from the 2012 earthquake in Northern Italy," Economics of Education Review, Elsevier, vol. 75(C).
    11. José Montalbán, 2023. "Countering Moral Hazard in Higher Education: The Role of Performance Incentives in Need-Based Grants," The Economic Journal, Royal Economic Society, vol. 133(649), pages 355-389.
    12. Mariagrazia Cavallo & Giuseppe Russo, 2020. "Reading Performance and Math Performance of Second-Generation Children in Italy," CSEF Working Papers 554, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    13. Giorgio Brunello & Angela Crema & Lorenzo Rocco, 2021. "Some Unpleasant Consequences of Testing at Length," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 1002-1023, August.
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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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