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Using Compulsory Mobility to Identify School Quality and Peer Effects
Authors:Francis Kramarz  Stephen Machin  Amine Ouazad
Institution:1. CREST, CEPR, and IZA Boulevard Gabriel Péri, Malakoff, Cedex, France;2. University College London, Centre for Economic Performance, London School of Economics, and CEPR, London, UK;3. INSEAD, Fontainebleau, France
Abstract:Education production functions that feature school and student fixed effects are identified using students' school mobility. However, student mobility is driven by factors like parents' labour market shocks and divorce. Movers experience large achievement drops, are more often minority and free meal students, and sort endogenously into peer groups and school types. We exploit an English institutional feature whereby some students must change schools between grades 2 and 3. We find no evidence of endogenous sorting of such compulsory movers across peer groups or school types. Non‐compulsory movers bias school quality estimates downward by as much as 20% of a SD.
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