London School of Economics EOPP: Economic Organisation and Public Policy Programme LSE
EOPP: Economic Organisation and Public Policy Programme

Current EOPP Research:
Heterogeneous Class Size Effect: New Evidence from a Panel of University Students

Oriana Bandiera and Valentino Larcinese (with Imran Rasul, UCL)

Abstract:

Over the last decade, many countries have experienced dramatic increases in university enrolment, which, when not matched by compensating increases in other inputs, have resulted in larger class sizes. Using administrative records from a leading UK university, the authors present evidence on the effects of class size on students' test scores. They observe the same student and faculty members being exposed to a wide range of class sizes from less than 10 to over 200. They therefore estimate non-linear class size effects controlling for unobserved heterogeneity of both individual students and faculty. They find that - (i) at the average class size, the effect size is -.108; (ii) the effect size is however negative and significant only for the smallest and largest ranges of class sizes and zero over a wide range of intermediate class sizes from 33 to 104; (iii) students at the top of the test score distribution are more affected by changes in class size, especially when class sizes are very large. They present evidence to rule out class size effects being due solely to the non-random assignment of faculty to class size, sorting by students onto courses on the basis of class size, omitted inputs, the difficulty of courses, or grading policies. The evidence also shows the class size effects are not mitigated for students with greater knowledge of the UK university system, this university in particular, or with greater family wealth.

Related paper

Heterogeneous Class Size Effect: New Evidence from a Panel of University Students