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Persistent inequality through schooling: the role of limited school capacity

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  • DEL REY, Elena

Abstract

Children of educated parents systematically perform better at school than children of uneducated parents. It is then natural, if the location of families in the city follows a socially stratified pattern, to observe differences in public school's performances even when they are identically financed. Free school choice is not enough to change this outcome. Capacity cannot be changed overnight and schools facing an excess demand may be forced to turn applications down. If the aim of the schoolis to maximize expected achievement of children, those from a less favored environment will be rejected first and segregation will increase. In order to overcome this negative result we propose a system of grants to disadvantaged children as a means to finance public schools.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2001010.

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Date of creation: 00 Feb 2001
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Handle: RePEc:cor:louvco:2001010

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Keywords: educational finance;

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References

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  1. Mark Gradstein & Moshe Justman, . "Public Schooling, Social Capital and Growth," EPRU Working Paper Series 99-21, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  2. Hartwick, John & Schweizer, Urs & Varaiya, Pravin, 1976. "Comparative statics of a residential economy with several classes," Journal of Economic Theory, Elsevier, vol. 13(3), pages 396-413, December.
  3. Fernandez, Raquel & Rogerson, Richard, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 135-64, February.
  4. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August.
  5. Benabou, Roland, 1994. "Human capital, inequality, and growth: A local perspective," European Economic Review, Elsevier, vol. 38(3-4), pages 817-826, April.
  6. 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.
  7. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 237-64, April.
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Cited by:
  1. Del Rey, Elena, 2004. "Funding schools for greater equity," Regional Science and Urban Economics, Elsevier, vol. 34(2), pages 203-224, March.

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