Hierarchical and comprehensive school systems are compared with respect to efficiency, where the possibility of failure at school is highlighted. At given ability, a student's probability of not completing school rises with increasing mean ability in class. The two kinds of school systems can yield identical average failure rates. Given that output losses in case of failure are stronger for more talented students, the comprehensive school system tends to lead to a higher total income.
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Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.
Find related papers by JEL classification: I20 - Health, Education, and Welfare - - Education - - - General
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