DOES CLASS SIZE MATTER

This paper analyzes pupil-specific public school data unavailable in previous studies applies instrumental variable econometric methods to account for non-random allocation of students to different class sizes and the endogeneity of the class size variable. By using better data and improved statistical techniques, this paper shows that there are returns to investing in smaller classes for certain students and it provides some evidence on why past literature has produced such inconsistent findings on the effects of class size.