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The Rate of Return to Private Schooling

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  • Wright, Robert E.

    ()
    (University of Strathclyde)

Abstract

This paper examines the relationship between "school quality" and earnings in the United Kingdom. The specific focus is on evaluating the effect that private schooling has on hourly wage rates. It is well known that private (i.e. fee-paying) schools compared to state schools score higher on most measures of school quality. Therefore by comparing individuals with private schooling to those with state schooling (and controlling for other variables) it is possible to indirectly evaluate the effect of school quality. Panel data from five waves of the British Household Panel Survey are used in the analysis.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 92.

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Length: 22 pages
Date of creation: Dec 1999
Date of revision:
Handle: RePEc:iza:izadps:dp92

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Keywords: Private education; school quality; earnings;

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References

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  1. Moon-Kak Kim & Solomon W. Polachek, 1994. "Panel Estimates of Male-Female Earnings Functions," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 406-428.
  2. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, American Economic Association, vol. 85(5), pages 1278-86, December.
  3. Eric A. Hanushek & Steven G. Rivkin & Lori L. Taylor, 1996. "Aggregation and the Estimated Effects of School Resources," NBER Working Papers 5548, National Bureau of Economic Research, Inc.
  4. David Card & Alan Krueger, 1990. "School Quality and Black/White Relative Earnings: A Direct Assessment," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 652, Princeton University, Department of Economics, Industrial Relations Section..
  5. Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
  6. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 645, Princeton University, Department of Economics, Industrial Relations Section..
  7. Betts, Julian R, 1995. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 231-50, May.
  8. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, American Economic Association, vol. 73(5), pages 928-46, December.
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Citations

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Cited by:
  1. Sebastian Calonico & Hugo Ñopo, 2007. "Returns to Private Education in Peru," Research Department Publications, Inter-American Development Bank, Research Department 4516, Inter-American Development Bank, Research Department.
  2. Brunello, Giorgio & Checchi, Daniele, 2003. "School Quality and Family Background in Italy," IZA Discussion Papers 705, Institute for the Study of Labor (IZA).
  3. Fertig, Michael & Schmidt, Christoph M., 2000. "Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective," IZA Discussion Papers 182, Institute for the Study of Labor (IZA).
  4. Andersson, Fredrik & Konrad, Kai A., 2002. "Taxation and education investment in the tertiary sector," Discussion Papers, Research Unit: Market Processes and Governance, Social Science Research Center Berlin (WZB) FS IV 02-17, Social Science Research Center Berlin (WZB).
  5. Bonin, Holger & Zimmermann, Klaus F., 2000. "The Post-Unification German Labor Market," IZA Discussion Papers 185, Institute for the Study of Labor (IZA).
  6. Antonio Caparrós Ruiz & Lucía Navarro Gómez & Mario Rueda Narváez, 2010. "Endogenous wage determinants and returns to education in Spain," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 31(4), pages 410-425, July.
  7. Sebastian Calonico & Hugo Ñopo, 2007. "Retornos a la Educación Privada en Perú," Research Department Publications, Inter-American Development Bank, Research Department 4517, Inter-American Development Bank, Research Department.
  8. Rana, Ejaz Ali Khan & Ali, Karamat, 2002. "Private schooling - a quality puzzle," MPRA Paper 34792, University Library of Munich, Germany.

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