Arbeitspapier

Teacher Expectations Matter

We develop and estimate a joint model of the education and teacher-expectation production functions that identifies both the distribution of biases in teacher expectations and the impact of those biases on student outcomes via self-fulfilling prophecies. The identification strategy leverages insights from the measurement-error literature and a unique feature of a nationally representative dataset: two teachers provided their educational expectations for each student. We provide novel, arguably causal evidence that teacher expectations affect students' educational attainment. Estimates suggest that the elasticity of the likelihood of college completion with respect to teachers' expectations is about 0.12. On average, teachers are overly optimistic about students' ability to complete a four-year college degree. However, the degree of over-optimism of white teachers is significantly larger for white students than for black students. This highlights a nuance that is frequently overlooked in discussions of biased beliefs: unbiased (i.e., accurate) beliefs can be counterproductive if there are positive returns to optimism or if there are socio-demographic gaps in the degree of teachers' over-optimism, both of which we find evidence of. We use the estimated model to assess the effects of two policies on black students' college completion: hiring more black teachers and "de-biasing" white teachers so that they are similarly optimistic about black and white students.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 10165

Classification
Wirtschaft
Expectations; Speculations
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Subject
education
educational attainment
teachers
subjective expectations
human capital accumulation

Event
Geistige Schöpfung
(who)
Papageorge, Nicholas W.
Gershenson, Seth
Kang, Kyungmin
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2016

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Papageorge, Nicholas W.
  • Gershenson, Seth
  • Kang, Kyungmin
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2016

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