In this paper, I investigate the impact of a programme in Tel-Aviv, Israel, that terminated an existing inter-district busing integration programme and allowed students free choice among public schools. The identification is based on difference-in-differences and regression discontinuity designs that yield various alternative comparison groups drawn from untreated tangent neighbourhoods and adjacent cities. Across identification methods and comparison groups, the results consistently suggest that choice significantly reduces the drop-out rate and increases the cognitive achievements of high-school students. It also improves behavioural outcomes such as teacher-student relationships and students' social acclimation and satisfaction at school, and reduces the level of violence and classroom disruption.

This paper presents evidence about the effect of individual monetary incentives on English and math teachers in Israel. Teachers were rewarded with cash bonuses for improving their students' performance in high-school matriculation exams. The main identification strategy is based on measurement error in the assignment to treatment variable that produced a randomized treatment sample. The incentives led to significant improvements in test taking rates, conditional pass rates, and mean test scores. Improvements were mediated through changes in teaching methods, enhanced after-school teaching, and increased responsiveness to students' needs. No evidence was found of manipulation of test scores by teachers.

Proposals to use teachers’ performance incentives have recently attracted considerable attention. However, there is very little experience with applying incentives in schools. This paper provides evidence on the causal effects of two programs: the first provided the school and its teachers with monetary performance incentives and the second with additional conventional resources. The assignment of schools to the two programs was not random; therefore, identification is a central issue in the empirical analysis. The empirical results suggest that schools’ and teachers’ group monetary incentives caused significant gains in many dimensions of students’ outcomes. Endowing schools with more resources also led to improvement in student performance. However, the comparison based on cost equivalency suggests that the teachers’ incentive intervention is much more cost effective.

Most research on the relationship between teacher characteristics and pupil achievement focuses on salaries, experience, and education. The effect of in‐service training has received less attention. We estimate the effect of in‐service teacher training on achievement in Jerusalem elementary schools using a matched‐comparison design. Differences‐in‐differences, regression, and matching estimates suggest training in secular schools led to an improvement in test scores. The estimates for religious schools are not clear cut, perhaps because training in religious schools started later and was implemented on a smaller scale. Estimates for secular schools suggest teacher training provided a cost‐effective means of increasing test scores.

Until 1983, the language of instruction for most subjects in grades 6 and above in Moroccan public schools was French. Beginning in 1983, the language of instruction for new cohorts of Moroccan sixth graders was switched to Arabic. We use this policy change to estimate the effect of French language skills on test scores and earnings. The estimates suggest that the elimination of compulsory French instruction led to a substantial reduction in the returns to schooling for Moroccans affected by the change. This reduction appears to be largely attributable to a loss of French writing skills.

We study the impact of financial incentives on higher education decisions and the choice of major. We rely on a reform whereby Israeli kibbutzim shifted from their traditional policy of equal sharing to productivity-based wages, using for identification the staggered implementation of this reform. In this setting of very low initial returns to education, we find that the dramatic increase in the rate of return and its sharp variation across fields of study led to a large increase in the probability of receiving a bachelor’s degree, especially in STEM fields of study that are expected to yield higher financial returns.

We analyze the long-term effects of a high school remedial education program almost two decades after its implementation. Treated students experienced an 11% increase in completed years of postsecondary schooling, a 4% increase in annual earnings, and a significant increase in intergenerational income mobility. These gains reflect improvement of students mainly from below-median-income families. We conclude that the program had gains beyond the short-term significant improvements in high school matriculation exams. A cost-benefit analysis of the program suggests that the government will recover its cost within 7–8 years, implying a very high rate of return.

We study ability peer effects in English secondary schools using data on four cohorts of students taking age-14 national tests and measuring peers’ ability by prior achievements at age 11. Our identification is based on within-pupil regressions exploiting variation in achievements across three compulsory subjects tested at age 14 and age 11. Using this novel strategy, we find significant and sizable negative effects arising from bad peers at the bottom of the ability distribution but little evidence that average peer quality and good peers matter. However, these results are heterogeneous, with girls benefiting from academically bright peers and boys not.

This article presents evidence on the child-quantity/child-quality trade-off using quasi-experimental variation due to twin births and preferences for a mixed sibling sex composition, as well as ethnic differences in the effects of these variables. Our sample includes groups with very high fertility. An innovation in our econometric approach is the juxtaposition of results from multiple instrumental variables strategies, capturing the effects of fertility over different ranges for different sorts of people. To increase precision, we develop an estimator that combines different instrument sets across partially overlapping parity-specific subsamples. Our results are remarkably consistent in showing no evidence of a quantity-quality trade-off.

This paper uses an unusual pay reform to test the responsiveness of investment in schooling to changes in redistribution schemes that increase the rate of return to education. We exploit an episode where different Israeli kibbutzim shifted from equal sharing to productivity-based wages in different years and find that students in kibbutzim that reformed earlier invested more in high school education and, in the long run, also in post-secondary schooling. We further show that the effect is mainly driven by students in kibbutzim that reformed to a larger degree. Our findings support the prediction that education is highly responsive to changes in the redistribution policy.