Abstract

This paper studies the extent to which young children develop their cognitive ability in high and low quality schools. We use a representative panel data set containing cognitive test scores of 4-6 year olds in Dutch schools. School quality is measured by the school’s average achievement test score at age 12. Our results indicate that children in high-quality schools develop their skills substantially faster than those in low-quality schools. The results remain robust to the inclusion of initial ability, parental background, and neighborhood controls. Moreover, using proximity to higher-achieving schools as an instrument for school choice corroborates the results. The robustness of the results points toward a causal interpretation, although it is not possible to erase all doubt about unobserved confounding factors.

Highlights

  • Abilities develop in a cumulative, dynamic process in which a child’s skills today determine tomorrow’s capabilities and potential to develop further cognitive skills

  • While there is evidence that preschool programs targeted at disadvantaged children have significant benefits, there is less literature on the role of school quality for children’s early cognitive development in a more general population of children

  • This paper investigates the development of early cognitive skills in high and low quality schools using a new panel data set on a representative sample of school starters in Limburg, a southern province of the Netherlands

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Summary

Introduction

Abilities develop in a cumulative, dynamic process in which a child’s skills today determine tomorrow’s capabilities and potential to develop further cognitive skills. Recent research has established that early differences in cognitive skills maintain or increase over time and are important predictors of later outcomes. One essential question for public policy, is to what degree schools can contribute to the development of early cognitive skills. While there is evidence that preschool programs targeted at disadvantaged children (e.g., the Perry preschool program) have significant benefits, there is less literature on the role of school quality for children’s early cognitive development in a more general population of children. This paper investigates the development of early cognitive skills in high and low quality schools using a new panel data set on a representative sample of school starters in Limburg, a southern province of the Netherlands.

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