This paper examines how schools choose class size and how households sort in response to those choices. Focusing on the highly liberalized Chilean education market, we develop a model in which schools are heterogeneous in an underlying productivity parameter, class size is a component of school...

This paper reviews the progress economists have made towards achieving an evidence-based educational policy, and highlights challenges that remain. The five main findings are: (1) over the past two decades, much effort has gone into identifying the causal effects of school inputs; this work has...