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Recovering Distributions in Difference-in-Differences Models: A Comparison of Selective and Comprehensive Schooling

Stéphane Bonhomme1; Ulrich Sauder2

1 Centro de Estudios Monetarios y Financieros · 2 University of Warwick

The Review of Economics and Statistics 2011

We compare the effects of selective and nonselective secondary education on children's test scores, using British data from the National Child Development Study. Test scores are modeled as the output of an additive production function. An important input is the child's unobserved initial endowment, which may be correlated with the education system attended. In this model, we generalize the difference-in-differences approach and identify the entire counterfactual distribution of potential outcomes. Our results suggest that the better performance of selective schools relative to nonselective ones is essentially due to differences in pupils' composition.

DOI
10.1162/rest_a_00164
Volume
93 (2)
Pages
479-494
Language
en
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