Examines the impact of class size on decisions to remain in school beyond age 16, estimating the effect of class size at age 16 on wages at ages 23, 33, and 42 via the effect on the school continuation decision. Overall, class size has a significant effect on the decision to stay in school. The effect of staying on is very positive for wages. (SM)

In general, the results show that teachers respond to earnings differentials, be those differentials in the form of actual salary differences or in the form of differences in career prospects. Available from Cambridge University Press, 32 East 57th Street, New York, New York 10022; single copy $16.50 plus postage. (Author/IRT)