Essays in economics of education: lessons from the 2010 earthquake in ChileTools Pincheira Sarmiento, Bernardo Eugenio (2019) Essays in economics of education: lessons from the 2010 earthquake in Chile. PhD thesis, University of Nottingham.
AbstractThis thesis comprises two research papers that use the 8.8 earthquake that struck Chile in 2010 as a source of exogenous variation in: peer composition for the first paper and in school year length in the second one. My first paper, chapter 2 of this thesis, studies the causal effect of classmates on students’ academic performance, known as peer effects. I use the earthquake as a source of variation in peer composition, using the fact that the earthquake hit a random area of the country and forced some students to move into new schools for non-academic reasons. I use OLS and instrumental variables econometric specifications, with data from students observed in 2010, in affected or non-affected areas, to answer this question. The regressions are performed only on students who do not move, the stayers. My results show that the peer effects are positive for students in both fourth and tenth grade, but statistical significance is sensitive to the specification chosen when using instrumental variables. An increase of one standard deviation in the average score of the peers has an effect between 0.15 and 0.22 standard deviations in the student's own score. In addition, using IV quantile regressions, I find some evidence of nonlinearities in the effect. The nonlinearities are not strong enough to allow me to find a pareto improving allocation of students, but it potentially allows for a certain allocation of students within school that might reduce educational inequality between students and marginally increase average performance according to simulations.
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