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Incentives, resources and the organization of the school system

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  • Fernando Albornoz
  • Samuel Berlinski
  • Antonio Cabrales

Abstract

We study a model where student effort 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 effort, which are partially compensated through school resources. In this way we provide a rationale for the ambiguous existing empirical evidence on the effect of school resources. We also provide a novel microfoundation for peer effects, with empirical implications on welfare and on preferences for sorting across schools.

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Bibliographic Info

Paper provided by FEDEA in its series Working Papers with number 2010-28.

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Date of creation: Nov 2010
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Handle: RePEc:fda:fdaddt:2010-28

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  1. 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.
  2. Dennis Epple & David Figlio & Richard Romano, 2000. "Competition Between Private and Public Schools: Testing Stratification and Pricing Predictions," NBER Working Papers 7956, National Bureau of Economic Research, Inc.
  3. Urquiola, Miguel & Verhoogen, Eric, 2007. "Class Size and Sorting in Market Equilibrium: Theory and Evidence," IZA Discussion Papers 2963, Institute for the Study of Labor (IZA).
  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. 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.
  6. Dennis Epple & Richard Romano, 2002. "Educational Vouchers and Cream Skimming," NBER Working Papers 9354, National Bureau of Economic Research, Inc.
  7. Dennis Epple & Richard Romano & Holger Sieg, . "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," GSIA Working Papers 2003-04, Carnegie Mellon University, Tepper School of Business.
  8. Brindusa Anghel & Antonio Cabrales, 2010. "The Determinants of Success in Primary Education in Spain," Working Papers 2010-20, FEDEA.
  9. 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.
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Cited by:
  1. 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.
  2. Kuehn, Zoe & Landeras, Pedro, 2012. "Study Time and Scholarly Achievement in PISA," MPRA Paper 49033, University Library of Munich, Germany.
  3. Albornoz-Crespo, Facundo & Cabrales, Antonio & Hauk, Esther, 2011. "Immigration and the School System," CEPR Discussion Papers 8653, C.E.P.R. Discussion Papers.
  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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