RT Journal Article SR Electronic T1 Birth Cohort Size Variation and the Estimation of Class Size Effects JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 0919-10430R2 DO 10.3368/jhr.0919-10430R2 A1 Bach, Maximilian A1 Sievert, Stephan YR 2024 UL http://jhr.uwpress.org/content/early/2024/08/01/jhr.0919-10430R2.abstract AB We show that in school systems with grade retention or redshirting birth cohort size is negatively related to the grade-level share of students who are too old for their grade. This compositional effect gives rise to an upward bias in estimates of class size effects based on commonly used research designs exploiting within-school variation in birth cohort size. Using data for all primary schools in one federal state of Germany, we find support for this compositional effect. Correcting for the resulting bias, we find that not only are smaller classes beneficial for test scores, but also for reducing grade repetitions.