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IZA Discussion Paper No. 8693
December 2014
School Inputs and Skills: Complementarity and Self-Productivity

Using administrative data on schools in England, we estimate an education production model of cognitive skills at the end of secondary school. We provide empirical evidence of self-productivity of skills and of complementarity between secondary school inputs and skills at the end of primary school. Our inference relies on idiosyncratic variation in school expenditure and child fixed effect estimation that controls for the endogeneity of past skills. The persistence in cognitive ability is 0.221 and the return to school expenditure is three times higher for students at the top of the past attainment distribution than for those at the bottom.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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