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Choosing between School Systems: The Risk of Failure


  • Volker Meier


Hierarchical and comprehensive school systems are compared with respect to efficiency, where the possibility of failure at school is highlighted. At given ability, a student's probability of not completing school rises with increasing mean ability in class. The two kinds of school systems can yield identical average failure rates. Given that output losses in case of failure are stronger for more talented students, the comprehensive school system tends to lead to a higher total income.

Suggested Citation

  • Volker Meier, 2004. "Choosing between School Systems: The Risk of Failure," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(1), pages 1-83, April.
  • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200404)60:1_83:cbsstr_2.0.tx_2-g

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    References listed on IDEAS

    1. Marcel Thum & Jakob von Weisäcker, 2000. "Implizite Einkommensteuer als Messlatte für die aktuellen Rentenreformvorschläge," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(4), pages 453-468, November.
    2. Robert Fenge & Silke Übelmesser & Martin Werding, 2002. "Second-best Properties of Implicit Social Security Taxes: Theory and Empirical Evidence," CESifo Working Paper Series 743, CESifo Group Munich.
    3. Mathias Kifman & Dirk Schindler, 2000. "Smoothing the Implicit Tax Rate in a Pay-as-you-go Pension System," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(3), pages 261-261, May.
    4. ûystein ThÛgersen, 1998. "A note on intergenerational risk sharing and the design of pay-as-you-go pension programs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(3), pages 373-378.
    5. Mathias Kifmann, 2001. "Langfristige Folgen einer Einbeziehung der Selbständigen in die gesetzliche Rentenversicherung," Discussion Papers of DIW Berlin 251, DIW Berlin, German Institute for Economic Research.
    6. Homburg, Stefan & Richter, Wolfram, 1990. "Eine effizienzorientierte Reform der GRV," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 183-191..
    7. Klaus Beckmann, 2000. "A Note on the Tax Rate implicit in Contributions to Pay-as-you-go Public Pension Systems," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(1), pages 1-63, September.
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    Cited by:

    1. Kangoh Lee, 2015. "Higher education expansion, tracking, and student effort," Journal of Economics, Springer, vol. 114(1), pages 1-22, January.
    2. Eric A. Hanushek & Ludger Wössmann, 2006. "Does Educational Tracking Affect Performance and Inequality? Differences- in-Differences Evidence Across Countries," Economic Journal, Royal Economic Society, vol. 116(510), pages 63-76, March.
    3. Volker Meier & Gabriela Schütz, 2007. "The Economics of Tracking and Non-Tracking," ifo Working Paper Series 50, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Maurizio Iacopetta, 2006. "Human Capital Dispersion and Incentives to Innovate," DEGIT Conference Papers c011_013, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. Entorf, Horst & Lauk, Martina, 2006. "Peer Effects, Social Multipliers and Migrants at School: An International Comparison," IZA Discussion Papers 2182, Institute for the Study of Labor (IZA).
    6. Alexander Kemnitz, 2007. "University Funding Reform, Competition, and Teaching Quality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 356-378, June.
    7. repec:bpj:bejeap:v:17:y:2017:i:3:p:10:n:9 is not listed on IDEAS
    8. Kiss David, 2017. "A Model about the Impact of Ability Grouping on Student Achievement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(3), pages 1-10, July.
    9. Gerald Eisenkopf, 2008. "Student Selection and Incentives," TWI Research Paper Series 42, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    10. Eisenkopf, Gerald & Wohlschlegel, Ansgar, 2012. "Regulation in the market for education and optimal choice of curriculum," Journal of Urban Economics, Elsevier, vol. 71(1), pages 53-65.
    11. repec:got:cegedp:57 is not listed on IDEAS
    12. Entorf, Horst & Lauk, Martina, 2006. "Peer effects, social multipliers and migration at school: An international comparison," HWWI Research Papers 3-3, Hamburg Institute of International Economics (HWWI).

    More about this item


    educational economics; human capital resource allocation; school choice;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General


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