School Quality and School Location
AbstractThis paper presents a model of school choice with peer effects and scale economies within schools. Parents` perception of school quality depends on resources and on the characteristics of the student body. A network of local schools of uniform quality will be optimal, even though different households prefer different qualities. Whether schools of different qualities emerge depends on the strength of peer effects. If peer effects are strong there will be an incentive for existing schools to select for ability and for new selective schools - state funded and private - to enter. To discourage bifurcation of the school system into different qualities, peer effects could be weakened, say by grouping students by ability within schools (`setting`, `streaming` or `tracking`).
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 50.
Date of creation: 01 Dec 2000
Date of revision:
education; school choice; peer effects;
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