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The effects of competition on the quality of primary schools in the Netherlands

Author

Listed:
  • Joëlle Noailly

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Suncica Vujic

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ali Aouragh

    () (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

Do schools facing more competition in their neighbourhood perform better than schools facing less competition? As a measure of school quality, we look at the performance of pupils at the nationwide standard test (the so-called Cito test) in the final year of primary education. Since competition is likely to be endogenous to the quality of schools, we use the distance between the school and the town centre as an instrument for the level of competition faced by a school. The intuition is that schools located close to the town centre, which are easily accessible to a large number of parents, face more competition than schools located further away from the town centre. Using a large range of data on pupil, school and market characteristics, we find that school competition has a small positive significant effect on pupil achievement. An increase in competition by one standard deviation (comparable to 5 additional schools in the market) increases pupil achievement at the Cito test by five to ten percent of the mean standard deviation, so about less than one point. This result is robust to a large range of specifications.

Suggested Citation

  • Joëlle Noailly & Suncica Vujic & Ali Aouragh, 2009. "The effects of competition on the quality of primary schools in the Netherlands," CPB Discussion Paper 120, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:discus:120
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    References listed on IDEAS

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    Cited by:

    1. Verena Wondratschek & Karin Edmark & Markus Frolich, 2013. "The Short- and Long-term Effects of School Choice on Student Outcomes - Evidence from a School Choice Reform in Sweden," Annals of Economics and Statistics, GENES, issue 111-112, pages 71-101.

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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