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Diploma No Problem: Can Private Schools Be of Lower Quality than Public Schools?

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Author Info

  • Brunello, Giorgio

    ()
    (University of Padova)

  • Rocco, Lorenzo

    ()
    (University of Padova)

Abstract

Motivated by anecdotal as well as econometric evidence from Italy, we ask whether private schools can provide lower quality than public schools. Using a stylized model of the education market with sequential entry of a public and a private school, we show that, depending on the underlying parameters of the model, a market structure with the private school offering at a positive price lower quality than the public school can be an equilibrium. The calibrated parameters for Italy suggest the existence of such an equilibrium in the Italian market for education.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1336.

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Length: 34 pages
Date of creation: Oct 2004
Date of revision:
Publication status: published as 'Educational standards in private and public schools' in: The Economic Journal, 2008, 118 (533), 1866-1887
Handle: RePEc:iza:izadps:dp1336

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Keywords: private schools; education; Italy;

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References

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  1. D. N. Figlio & J. A. Stone, . "School Choice and Student Performance: Are Private Schools Really Better?," Institute for Research on Poverty Discussion Papers 1141-97, University of Wisconsin Institute for Research on Poverty.
  2. De Fraja, Gianni, 2002. "The Design of Optimal Education Policies," Review of Economic Studies, Wiley Blackwell, vol. 69(2), pages 437-66, April.
  3. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
  4. Giorgio Brunello & Daniele Checchi, 2003. "School Quality and Family Background in Italy," Working Papers 2003.10, Fondazione Eni Enrico Mattei.
  5. 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.
  6. Vandenberghe, V. & Robin, S., 2004. "Evaluating the effectiveness of private education across countries: a comparison of methods," Labour Economics, Elsevier, vol. 11(4), pages 487-506, August.
  7. Feinstein, Leon & Symons, James, 1999. "Attainment in Secondary School," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 300-321, April.
  8. 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.
  9. Bertola, Giuseppe & Checchi, Daniele, 2002. "Sorting and Private Education in Italy," CEPR Discussion Papers 3198, C.E.P.R. Discussion Papers.
  10. Besley, T. & Coate, S., 1989. "Public Provision Of Private Goods And The Redistribution Of Income," Papers 36, Princeton, Woodrow Wilson School - Discussion Paper.
  11. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September.
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Cited by:
  1. Brunello, Giorgio & Checchi, Daniele, 2005. "School Vouchers Italian Style," IZA Discussion Papers 1475, Institute for the Study of Labor (IZA).
  2. Carmen Aina, 2010. "The Determinants of Success and Failure of Italian University Students. Evidence from administrative data," Working Papers 131, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
  3. Gianni De Fraja, 2004. "Education and Redistribution," Rivista di Politica Economica, SIPI Spa, vol. 94(3), pages 3-44, May-June.

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