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School Choice : income, Peer effect and the formation of Inequalities

Author

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  • Saïd Hanchane

    () (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)

  • Tarek Mostafa

    () (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we analyze the equilibrium on the market for schooling where both public and private schools coexist and where individuals are differentiated by income and ability. We introduce a non linear in means model of peer effect by shedding the light on the fact that school quality is not solely dependent on mean ability but also on the dispersion of abilities. We study the distribution of students across sectors while examining the conditions for the existence of a majority voting equilibrium in the context of non single peaked preferences. Finally, we examine the presence of a hierarchy of school qualities. In the paper we shed the light on equity problems related to the access to educational quality while analyzing the functioning of the educational system.

Suggested Citation

  • Saïd Hanchane & Tarek Mostafa, 2007. "School Choice : income, Peer effect and the formation of Inequalities," Working Papers halshs-00009533, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00009533
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00009533v3
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    References listed on IDEAS

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    1. Epple, Dennis & Filimon, Radu & Romer, Thomas, 1993. "Existence of voting and housing equilibrium in a system of communities with property taxes," Regional Science and Urban Economics, Elsevier, vol. 23(5), pages 585-610, November.
    2. Benabou, Roland, 1996. "Heterogeneity, Stratification, and Growth: Macroeconomic Implications of Community Structure and School Finance," American Economic Review, American Economic Association, vol. 86(3), pages 584-609, June.
    3. Henderson, Vernon & Mieszkowski, Peter & Sauvageau, Yvon, 1978. "Peer group effects and educational production functions," Journal of Public Economics, Elsevier, vol. 10(1), pages 97-106, August.
    4. Stiglitz, J. E., 1974. "The demand for education in public and private school systems," Journal of Public Economics, Elsevier, vol. 3(4), pages 349-385, November.
    5. J. S. Ferris & E. G. West, 2004. "Economies of scale, school violence and the optimal size of schools," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1677-1684.
    6. Calabrese, Stephen & Epple, Dennis & Romer, Thomas & Sieg, Holger, 2006. "Local public good provision: Voting, peer effects, and mobility," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 959-981, August.
    7. Raquel Fernandez & Richard Rogerson, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 135-164.
    8. Epple, Dennis & Filimon, Radu & Romer, Thomas, 1984. "Equilibrium among local jurisdictions: toward an integrated treatment of voting and residential choice," Journal of Public Economics, Elsevier, vol. 24(3), pages 281-308, August.
    9. Kenny, Lawrence W., 1982. "Economies of scale in schooling," Economics of Education Review, Elsevier, vol. 2(1), pages 1-24, February.
    10. Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, vol. 62(3), pages 297-325, November.
    11. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-652, September.
    12. Scotchmer, Suzanne & Wooders, Myrna Holtz, 1987. "Competitive equilibrium and the core in club economies with anonymous crowding," Journal of Public Economics, Elsevier, vol. 34(2), pages 159-173, November.
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