Scandinavian Working Papers in Economics

SOFI Working Papers in Labour Economics,
Stockholm University, Swedish Institute for Social Research

No 4/2024: Parental and School Responses to Student Performance: Evidence from School Entry Rules

Peter Fredriksson (), Björn Öckert () and J. Lucas Tilley ()
Additional contact information
Peter Fredriksson: Department of Economics, Uppsala University
Björn Öckert: Institute for Evaluation of Labour Market and Education Policy (IFAU)
J. Lucas Tilley: Swedish Institute for Social Research, Postal: SOFI, Stockholm University, SE-106 91 Stockholm, Sweden

Abstract: We examine whether parental and school investments reinforce or compensate for student performance. Our analysis exploits school-starting-age rules in 34 countries, capturing achievement variation that arises because younger children typically underperform their older peers. Parents respond to lower performance by providing additional homework help, while schools allocate weaker students to smaller classes and offer more remedial tutoring. Notably, parents provide more support to low-performing children in nearly all countries studied. Compensatory investments increase over grade levels, suggesting parents and schools respond as information about achievement is revealed. Moreover, our evidence suggests that parental and school investments are substitutes.

Keywords: human capital investment; parental inputs; school inputs; student performance; school starting age

JEL-codes: I21; I28; J24

Language: English

71 pages, July 2, 2024

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