Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2022-03-22 Number: 22-025/V Author-Name: Gian Paolo Barbetta Author-Workplace-Name: Università Cattolica del Sacro Cuore Author-Name: Patrick Chuard-Keller Author-Workplace-Name: University St. Gallen Author-Name: Giuseppe Sorrenti Author-Workplace-Name: University of Amsterdam Author-Name: Gilberto Turati Author-Workplace-Name: Università Cattolica del Sacro Cuore Title: Good or Bad? Short- versus Long-Term Effects of Multigrading on Child Achievement Abstract: This paper studies the effect of multigrading—mixing children of different ages in the same classroom—on students’ short- versus long-term academic achievement in Italy. We cope with the endogeneity of multigrading (and class size) through an instrumental variable identification strategy based on a law that disciplines class composition. By relying on longitudinal data that follow a cohort of Italian students over their compulsory school career, we show that multigrading has a positive short-term effect on achievements. This effect fades away over time to become negative in the long run if students spend several years in a multigrade class. The analysis of mechanisms points to the fundamental role of teachers and suggests that no negative long-term effect arises when multigrade classes are taught by more experienced and motivated teachers. These results reconcile contrasting findings in the literature based on cross-sectional data and a short-term focus. Classification-JEL: I26, I28, R53, H52 Keywords: Multigrade, Child development, Education, Class size, Peer effects File-URL: https://papers.tinbergen.nl/22025.pdf File-Format: application/pdf File-Size: 408,169 bytes Handle: RePEc:tin:wpaper:20220025