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Incentives, resources and the organization of the school system

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  • Albornoz-Crespo, Facundo
  • Berlinski, Samuel
  • Cabrales, Antonio

Abstract

We study a model where student e ort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. We can show, for example, that an improvement in parental outside options will reduce parental and school eff ort, which are partially compensated through school resources. In this way we provide a rationale for the ambiguous existing empirical evidence on the e ffect of school resources. We also provide a novel microfoundation for peer e ffects, with empirical implications on welfare and on preferences for sorting across schools. 

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7964.

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Date of creation: Aug 2010
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Handle: RePEc:cpr:ceprdp:7964

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Keywords: education; parental effort; school resources;

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References

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  1. C. Kirabo Jackson, 2009. "Student Demographics, Teacher Sorting, and Teacher Quality: Evidence from the End of School Desegregation," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 213-256, 04.
  2. Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, 07.
  3. Epple, Dennis & Figlio, David & Romano, Richard, 2004. "Competition between private and public schools: testing stratification and pricing predictions," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1215-1245, July.
  4. Sean Corcoran & William N. Evans, 2010. "Income Inequality, the Median Voter, and the Support for Public Education," NBER Working Papers 16097, National Bureau of Economic Research, Inc.
  5. Dennis Epple & Richard Romano, 2002. "Educational Vouchers and Cream Skimming," NBER Working Papers 9354, National Bureau of Economic Research, Inc.
  6. Miguel Urquiola & Eric A. Verhoogen, 2007. "Class size and sorting in market equilibrium: Theory and evidence," Discussion Papers 0607-14, Columbia University, Department of Economics.
  7. 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.
  8. Brindusa Anghel & Antonio Cabrales, 2010. "The Determinants of Success in Primary Education in Spain," Working Papers 2010-20, FEDEA.
  9. Duflo, Esther & Dupas, Pascaline & Kremer, Michael, 2008. "Peer Effects and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," CEPR Discussion Papers 7043, C.E.P.R. Discussion Papers.
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Cited by:
  1. Facundo Albornoz & Antonio Cabrales & Esther Hauk, 2012. "Immigration and the school system," Economics Working Papers we1203, Universidad Carlos III, Departamento de Economía.
  2. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, vol. 96(1), pages 237-254.
  3. Kuehn, Zoe & Landeras, Pedro, 2012. "Study Time and Scholarly Achievement in PISA," MPRA Paper 49033, University Library of Munich, Germany.
  4. Elizabeth Beasley & Elise Huillery, 2013. "School Resources, Behavioral Responses and School Quality: Short-Term Experimental Evidence from Niger," Sciences Po publications info:hdl:2441/7o52iohb7k6, Sciences Po.

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