Abstract
This study examines whether class size has heterogeneous effects for students from different socio-economic backgrounds by exploiting rich student-level data obtained from a nationwide survey in Japan. We find substantial disparities in cognitive skills among students from different socio-economic backgrounds. While the overall effect of class size on cognitive ability of ninth-grade students is small, we find that class-size reduction has a larger effect on cognitive ability of economically disadvantaged students. We find no signs related to systematic enrollment manipulation.
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