Econometric Methods for Causal Evaluation of Education Policies and Practices: A Non-Technical Guide

39 Pages Posted: 1 Feb 2010

See all articles by Martin Schlotter

Martin Schlotter

Bavarian Ministry for Economic Affairs,Infrastructure, Transport an Technology

Guido Schwerdt

University of Konstanz - Faculty of Economics and Statistics

Ludger Woessmann

Ifo Institute for Economic Research; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); University of Munich - Ifo Institute for Economic Research

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Abstract

Education policy-makers and practitioners want to know which policies and practices can best achieve their goals. But research that can inform evidence-based policy often requires complex methods to distinguish causation from accidental association. Avoiding econometric jargon and technical detail, this paper explains the main idea and intuition of leading empirical strategies devised to identify causal impacts and illustrates their use with real-world examples. It covers six evaluation methods: controlled experiments, lotteries of oversubscribed programs, instrumental variables, regression discontinuities, differences-in-differences, and panel-data techniques. Illustrating applications include evaluations of early-childhood interventions, voucher lotteries, funding programs for disadvantaged, and compulsory-school and tracking reforms.

Keywords: causal effects, education, policy evaluation, non-technical guide

JEL Classification: I20, C01

Suggested Citation

Schlotter, Martin and Schwerdt, Guido and Woessmann, Ludger, Econometric Methods for Causal Evaluation of Education Policies and Practices: A Non-Technical Guide. IZA Discussion Paper No. 4725, Available at SSRN: https://ssrn.com/abstract=1545152 or http://dx.doi.org/10.2139/ssrn.1545152

Martin Schlotter (Contact Author)

Bavarian Ministry for Economic Affairs,Infrastructure, Transport an Technology ( email )

Prinzregentenstraße 28
Munich, Bavaria 01069
Germany
+49(0)8921622275 (Phone)

Guido Schwerdt

University of Konstanz - Faculty of Economics and Statistics ( email )

Universitaetsstr. 10
78457 Konstanz
Germany

Ludger Woessmann

Ifo Institute for Economic Research ( email )

Poschingerstr. 5
Munich
Germany
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++49 89 9224 1460 (Fax)

HOME PAGE: http://www.cesifo.de/link/woessmann_l.htm

Institute for the Study of Labor (IZA)

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Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Munich, DE-81679
Germany

University of Munich - Ifo Institute for Economic Research

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Munich, 80539
Germany

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