The publication of the OECD report on the PISA 2000 study induced a public outcry in
Germany. On average, German students participating in this standardized test performed
considerably below the OECD average and substantially worse than those of other European
countries, like Finland or Ireland. However, the results presented by the report consist mainly
of country averages which do not take into account any other covariates of individual student
achievement. This paper provides a comprehensive econometric analysis of the association
of the individual-level reading test scores of German students with individual and family
background information and with characteristics of the school and class of the 15 to 16 year
old respondents in Germany to the survey. The results of several quantile regression
analyses demonstrate that many popular explanations, like too much regulation of schools or
the substantial share of non-citizens among the participating students, are by no means
supported by the data. Rather results point towards a considerable impact of schools aiming
at a more homogenous body of students in terms of their educational achievement.
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