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On the Efficiency Costs of De-tracking Secondary Schools

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Author Info

  • Kenn Ariga

    () (Kyoto University)

  • Giorgio Brunello

    () (Padova University, Kyoto University, CESifo and IZA)

  • Roki Iwahashi

    () (University of the Ryukyus, Okinawa)

  • Lorenzo Rocco

    () (Padova University)

Abstract

During the postwar period, many countries have de-tracked their secondary schools, based on the view that early tracking was unfair. What are the efficiency costs, if any, of de-tracking schools? To answer this question, we develop a two skills - two jobs model with a frictional labour market, where new school graduates need to actively search for their best match. We compute optimal tracking length and the output gain/loss associated to the gap between actual and optimal tracking length. Using a sample of 18 countries, we find that: a) actual tracking length is often longer than optimal, which might call for some efficient de-tracking; b) the output loss of having a tracking length longer or shorter than optimal is sizeable, and close to 2 percent of total net output.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2534.

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Length: 58 pages
Date of creation: Dec 2006
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Handle: RePEc:iza:izadps:dp2534

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Keywords: mismatch; school tracking;

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References

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  1. Costas Meghir & Marten Palme, 2000. "Assessing the Effect of Schooling on Earnings Using a Social Experiment," Econometric Society World Congress 2000 Contributed Papers 0670, Econometric Society.
  2. Eric A. Hanushek & Ludger Wößmann, 2005. "Does Education Tracking Affect Performance and Inequality? Differences-In-Differences Evidence Across Countries," Discussion Papers 04-026, Stanford Instititute for Economic Policy Research.
  3. Yashiv, E., 1999. "The Determinants of Equilibrium Unemployment," Papers 36-99, Tel Aviv.
  4. Giorgio Brunello & Daniele Checchi, 2006. "Does School Tracking Affect Equality of Opportunity? New International Evidence," IZA Discussion Papers 2348, Institute for the Study of Labor (IZA).
  5. Hanushek, Eric A. & Leung, Charles Ka Yui & Yilmaz, Kuzey, 2003. "Redistribution through education and other transfer mechanisms," Journal of Monetary Economics, Elsevier, vol. 50(8), pages 1719-1750, November.
  6. Roland Benabou, 2002. "Tax and Education Policy in a Heterogeneous-Agent Economy: What Levels of Redistribution Maximize Growth and Efficiency?," Econometrica, Econometric Society, vol. 70(2), pages 481-517, March.
  7. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," NBER Working Papers 12006, National Bureau of Economic Research, Inc.
  8. Richard Rogerson & Robert Shimer & Randall Wright, 2004. "Search-Theoretic Models of the Labor Market-A Survey," NBER Working Papers 10655, National Bureau of Economic Research, Inc.
  9. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
  10. Lamo, Ana & Messina, Julián & Wasmer, Etienne, 2011. "Are specific skills an obstacle to labor market adjustment?," Labour Economics, Elsevier, vol. 18(2), pages 240-256, April.
  11. Brunello, Giorgio & Giannini, Massimo & Ariga, Kenn, 2004. "The Optimal Timing of School Tracking," IZA Discussion Papers 995, Institute for the Study of Labor (IZA).
  12. Kenn Ariga & Giorgio Brunello & Roki Iwahashi & Lorenzo Rocco, 2005. "Why Is the Timing of School Tracking So Heterogeneous?," IZA Discussion Papers 1854, Institute for the Study of Labor (IZA).
  13. James W. Albrecht & Pieter A. Gautier & Susan B. Vroman, 2001. "Matching with Multiple Applications," Tinbergen Institute Discussion Papers 01-080/3, Tinbergen Institute.
  14. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc.
  15. Graziella Bertocchi and Michael Spagat, 2001. "The Evolution of Modern Educational Systems," Royal Holloway, University of London: Discussion Papers in Economics 01/4, Department of Economics, Royal Holloway University of London, revised Sep 2001.
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Citations

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Cited by:
  1. Antonio Romero Medina & Mateo Triossi, 2007. "Games of capacities : a (close) look to Nash Equilibria," Economics Working Papers we075933, Universidad Carlos III, Departamento de Economía.
  2. Ferreira, Francisco H. G. & Gignoux, Jeremie, 2011. "The measurement of educational inequality : achievement and opportunity," Policy Research Working Paper Series 5873, The World Bank.
  3. Volker Meier & Gabriela Schütz, 2007. "The Economics of Tracking and Non-Tracking," Ifo Working Paper Series Ifo Working Papers No. 50, Ifo Institute for Economic Research at the University of Munich.

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