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Market-based reforms of public schooling: some unpleasant dynamics

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  • Adnett, Nick
  • Bougheas, Spiros
  • Davies, Peter

Abstract

Reforms in m any countries have attempted to increase the degree of competition in schooling markets. The partial implementation of market solutions has not always produced the uniform, system-wide rise in educational standards anticipated by economists advocating reform. In this paper we analyse schooling market outcomes utilizig a simple model of the type of local market created in England and Wales. Regulatory authorities and researchers have noted that within local English and Welsh schooling markets, reform has been associated with an increase in the diversity of school performance, with pre-existing school hierarchies being reinforced, ra ther than challenged. We show that both promotion of an indicator of school performance based upon unadjusted pupil attainment and the presence of peer group effects can generate these market outcomes.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 21 (2002)
Issue (Month): 4 (August)
Pages: 323-330

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Handle: RePEc:eee:ecoedu:v:21:y:2002:i:4:p:323-330

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References

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  1. Donald Robertson & James Symons, 1996. "Do peer Groups Matter? Peer Groups versus Schooling Effects on Academic Attainment," CEP Discussion Papers dp0311, Centre for Economic Performance, LSE.
  2. Arnott, Richard & Rowse, John, 1987. "Peer group effects and educational attainment," Journal of Public Economics, Elsevier, vol. 32(3), pages 287-305, April.
  3. de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
  4. Zanzig, Blair R., 1997. "Measuring the impact of competition in local government education markets on the cognitive achievement of students," Economics of Education Review, Elsevier, vol. 16(4), pages 431-441, October.
  5. Vickers, John, 1995. "Concepts of Competition," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 1-23, January.
  6. Douglas. Lamdin & Micheal Mintrom, 1997. "School Choice in Theroy and Practise: Taking Stock and Looking Ahead," Education Economics, Taylor & Francis Journals, vol. 5(3), pages 211-244.
  7. Laura M. Argys & Daniel I. Rees & Dominic J. Brewer, 1996. "Detracking America's schools: Equity at zero cost?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 15(4), pages 623-645.
  8. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-52, September.
  9. Brueckner, Jan K. & Lee, Kangoh, 1989. "Club theory with a peer-group effect," Regional Science and Urban Economics, Elsevier, vol. 19(3), pages 399-420, August.
  10. Somanathan, Rohini, 1998. "School heterogeneity, human capital accumulation, and standards," Journal of Public Economics, Elsevier, vol. 67(3), pages 369-397, March.
  11. Marlow, Michael L., 1999. "Spending, school structure, and public education quality. Evidence from California," Economics of Education Review, Elsevier, vol. 19(1), pages 89-106, February.
  12. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
  13. Evans, William N & Oates, Wallace E & Schwab, Robert M, 1992. "Measuring Peer Group Effects: A Study of Teenage Behavior," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 966-91, October.
  14. Levin, Henry M., 1991. "The economics of educational choice," Economics of Education Review, Elsevier, vol. 10(2), pages 137-158, June.
  15. Feinstein, Leon & Symons, James, 1999. "Attainment in Secondary School," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 300-321, April.
  16. Caroline Minter Hoxby, 1996. "Are Efficiency and Equity in School Finance Substitutes or Complements?," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 51-72, Fall.
  17. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September.
  18. Anne West & Hazel Pennell, 1997. "Educational Reform and School Choice in England and Wales," Education Economics, Taylor & Francis Journals, vol. 5(3), pages 285-305.
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Citations

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Cited by:
  1. BenDavid-Hadar, Iris & Ziderman, Adrian, 2010. "A New Model for Equitable and Efficient Resource Allocation to Schools: The Israeli Case," IZA Discussion Papers 4822, Institute for the Study of Labor (IZA).
  2. Foreman-Peck, James & Foreman-Peck, Lorraine, 2006. "Should schools be smaller? The size-performance relationship for Welsh schools," Economics of Education Review, Elsevier, vol. 25(2), pages 157-171, April.
  3. Kertesi, Gábor & Kézdi, Gábor, 2005. "Általános iskolai szegregáció, II. rész. Az általános iskolai szegregálódás folyamata Magyarországon és az iskolai teljesítménykülönbségek
    [Primary-school segregation II. The proce
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 462-479.
  4. Nick Adnett & Peter Davies, 2005. "Competition between or within schools? Re-assessing school choice," Education Economics, Taylor & Francis Journals, vol. 13(1), pages 109-121.
  5. Barry Reilly & Ray Bachan, 2005. "A comparison of A-level performance in economics and business studies: How much more difficult is economics?," Education Economics, Taylor & Francis Journals, vol. 13(1), pages 85-108.
  6. Takashi Oshio & Shinpei Sano & Yuko Ueno & Kouichiro Mino, 2008. "Evaluations by parents of education reforms: Evidence from a parent survey in Japan," Discussion Papers 0821, Graduate School of Economics, Kobe University.

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