UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Endogeneity Problems in Multilevel Estimation of Education Production Functions: an Analysis Using PISA Data

Hanchane, S; Mostafa, T; (2010) Endogeneity Problems in Multilevel Estimation of Education Production Functions: an Analysis Using PISA Data. (LLAKES Research Paper 14). Centre for Learning and Life Chances in Knowledge Economies and Societies (LLAKES), UCL Institute of Education: London, UK. Green open access

[thumbnail of HanchaneMostafa-14-final-online.pdf]
Preview
Text
HanchaneMostafa-14-final-online.pdf - Published Version

Download (504kB) | Preview

Abstract

This paper explores endogeneity problems in multilevel estimation of education production functions. The focus is on level 2 endogeneity which arises from correlations between student characteristics and omitted school variables. We first develop a theoretical model in order to show that school and peer characteristics are the by-product of student background. This theoretical framework helps the identification of the hypotheses we would like to test within the empirical part. From an econometric point of view, the correlations between student and school characteristics imply that the omission of some variables may generate endogeneity bias. Therefore, in the second section of the paper, an estimation approach based on the Mundlak (1978) technique is developed in order to tackle bias and to generate consistent estimates. The entire analysis is undertaken in a comparative context between three countries: Germany, Finland and the UK. Each one of them represents a particular system. For instance, Finland is known for its extreme comprehensiveness, Germany for early selection and the UK for its liberalism. These countries are used to illustrate the theory and to prove that the level of bias arising from omitted variables varies according to the characteristics of education systems.

Type: Working / discussion paper
Title: Endogeneity Problems in Multilevel Estimation of Education Production Functions: an Analysis Using PISA Data
Open access status: An open access version is available from UCL Discovery
Publisher version: https://www.llakes.ac.uk/research-papers
Language: English
Additional information: This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Endogeneity bias, PISA data, Multilevel models, Comparative analysis
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > School of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education > IOE - Social Research Institute
URI: https://discovery.ucl.ac.uk/id/eprint/1518082
Downloads since deposit
15Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item