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Educational Standards in Private and Public Schools

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  • Giorgio Brunello
  • Lorenzo Rocco

Abstract

We show that, when school quality is measured by the educational standard and attaining the standard requires costly effort, secondary education needs not be a hierarchy with private schools offering better quality than public schools, as in Epple and Romano, 1998. An alternative configuration, with public schools offering a higher educational standard than private schools, is also possible, in spite of the fact that tuition levied by private schools is strictly positive. In our model, private schools can offer a lower educational standard at a positive price because they attract students with a relatively high cost of effort, who would find the high standards of the public school excessively demanding. With the key parameters calibrated on the available micro-econometric evidence from the US, our model predicts that majority voting in the US supports a system with high quality private schools and low quality public schools, as assumed by Epple and Romano, 1998. This system, however, is not the one that would be selected by the social planner, who prefers high quality public schools combined with low quality private schools.

Suggested Citation

  • Giorgio Brunello & Lorenzo Rocco, 2005. "Educational Standards in Private and Public Schools," CESifo Working Paper Series 1418, CESifo.
  • Handle: RePEc:ces:ceswps:_1418
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    2. Giorgio Brunello & Lorenzo Rocco, 2008. "Educational Standards in Private and Public Schools," Economic Journal, Royal Economic Society, vol. 118(533), pages 1866-1887, November.
    3. Adriana Di Liberto, 2015. "Length of stay in the host country and educational achievement of immigrant students: The Italian case," International Journal of Manpower, Emerald Group Publishing, vol. 36(4), pages 585-618, July.
    4. Michela Ponzo, 2011. "The effects of school competition on the achievement of Italian students," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 32(1), pages 53-61, January.
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    6. Gilberto Turati & Daniel Montolio & Massimiliano Piacenza, 2011. "Fiscal decentralisation, private school funding, and students’ achievements. A tale from two roman catholic countries," Working Papers 2011/44, Institut d'Economia de Barcelona (IEB).
    7. Bertoni, Marco & Gibbons, Stephen & Silva, Olmo, 2017. "School Choice during a Period of Radical School Reform: Evidence from the Academy Programme," IZA Discussion Papers 11162, Institute of Labor Economics (IZA).
    8. Giuseppe Bertola & Daniele Checchi, 2013. "Who Chooses Which Private Education? Theory and International Evidence," LABOUR, CEIS, vol. 27(3), pages 249-271, September.
    9. Giuseppe Bertola, 2017. "France's Almost Public Private Schools," LABOUR, CEIS, vol. 31(3), pages 225-244, September.
    10. Andreas Ammermueller, 2013. "Institutional Features of Schooling Systems and Educational Inequality: Cross-Country Evidence From PIRLS and PISA," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 190-213, May.
    11. Dario Maldonado, 2008. "A model of school behavior: tuition fees and grading standards," Documentos de Trabajo 005106, Universidad del Rosario.
    12. Adriana Di Liberto & Fabiano Schivardi & Giovanni Sulis, 2015. "Managerial practices and student performance," Economic Policy, CEPR;CES;MSH, vol. 30(84), pages 683-728.
    13. Giuseppe Bertola & Daniele Checchi & Veruska Oppedisano, 2007. "Private School Quality in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 66(3), pages 375-400, November.
    14. Del Rey Elena & Estevan Fernanda, 2020. "Assessing Higher Education Policy in Brazil: A Mixed Oligopoly Approach," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-16, January.
    15. Liu, Ting & Albert Ma, Ching-to & Mak, Henry Y., 2018. "Incentives for motivated experts in a partnership," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 296-313.
    16. Castro Aristizabal, Geovanny & Giménez, Gregorio & Pérez Ximénez-de-Embún, Domingo, 2018. "Estimation of factors conditioning the acquisition of academic skills in Latin America in the presence of endogeneity," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    17. Marco Bertoni & Stephen Gibbons & Olmo Silva, 2017. "What’s in a Name? Expectations, Heuristics and Choice During a Period of Radical School Reform," CEP Discussion Papers dp1477, Centre for Economic Performance, LSE.
    18. Contini Dalit & Scagni Andrea, 2012. "Social-Origin Inequalities in Educational Careers in Italy. Performance or Decision Effects?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201214, University of Turin.
    19. Martinez-Mora, Francisco, 2006. "The existence of non-elite private schools," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1505-1518, September.
    20. Stefano STAFFOLANI & Maria Cristina RECCHIONI, 2016. "Increasing Graduation and Calling for More Autonomy in Higher Education: Is It a Good Thing? A Theoretical Model," Working Papers 419, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    21. Marina Murat & Luca Bonacini, 2020. "Coronavirus pandemic, remote learning and education inequalities," Department of Economics (DEMB) 0177, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    22. Burgess, Simon, 2016. "Human Capital and Education: The State of the Art in the Economics of Education," IZA Discussion Papers 9885, Institute of Labor Economics (IZA).
    23. Jacqmin, Julien, 2014. "The Emergence of For-Profit Higher Education Institutions," MPRA Paper 59299, University Library of Munich, Germany.
    24. Gilberto Turati & Daniel Montolio & Massimiliano Piacenza, 2011. "Fiscal decentralisation, private school funding, and students’ achievements. A tale from two roman catholic countries," Working Papers 2011/44, Institut d'Economia de Barcelona (IEB).

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    More about this item

    Keywords

    private schools; public schools; majority voting;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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