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Sorting, peer effects and school effectiveness in private and public schools

Author

Listed:
  • Friesen, Jane
  • Cohn, Ricardo Meilman
  • Woodcock, Simon

Abstract

Using longitudinal student-level data for a population of students enrolled in both public and private schools, we estimate an empirical model of test scores that allows us to decompose the private/public test score gap into components accounted for by student ability, peer ability, and school effectiveness. We find that private schools score substantially above the public school mean primarily because they “cream-skim” high ability students, and this cream-skimming benefits private school students via meaningful peer effects. Conditional on these peer effects, the average private school is no more effective than the average public school. Disaggregating by private school type, and conditional on peer effects, Catholic private schools are more effective than public schools in numeracy and other Christian private schools are less so. Simulations suggest that the peer effect arising from private school cream-skimming has little effect on the average outcomes of public school students.

Suggested Citation

  • Friesen, Jane & Cohn, Ricardo Meilman & Woodcock, Simon, 2026. "Sorting, peer effects and school effectiveness in private and public schools," Economics of Education Review, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:ecoedu:v:112:y:2026:i:c:s0272775726000282
    DOI: 10.1016/j.econedurev.2026.102786
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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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