Diploma No Problem: Can Private Schools Be of Lower Quality than Public Schools?
Motivated by anecdotal as well as econometric evidence from Italy, we ask whether private schools can provide lower quality than public schools. Using a stylized model of the education market with sequential entry of a public and a private school, we show that, depending on the underlying parameters of the model, a market structure with the private school offering at a positive price lower quality than the public school can be an equilibrium. The calibrated parameters for Italy suggest the existence of such an equilibrium in the Italian market for education.
|Date of creation:||Oct 2004|
|Publication status:||published as 'Educational standards in private and public schools' in: The Economic Journal, 2008, 118 (533), 1866-1887|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brunello, Giorgio & Checchi, Daniele, 2005.
"School quality and family background in Italy,"
Economics of Education Review,
Elsevier, vol. 24(5), pages 563-577, October.
- Giorgio Brunello & Daniele Checchi, 2003. "School Quality and Family Background in Italy," Working Papers 2003.10, Fondazione Eni Enrico Mattei.
- Brunello, Giorgio & Checchi, Daniele, 2003. "School Quality and Family Background in Italy," IZA Discussion Papers 705, Institute for the Study of Labor (IZA).
- D. N. Figlio & J. A. Stone, "undated". "School Choice and Student Performance: Are Private Schools Really Better?," Institute for Research on Poverty Discussion Papers 1141-97, University of Wisconsin Institute for Research on Poverty.
- Epple, Dennis & Figlio, David & Romano, Richard, 2004. "Competition between private and public schools: testing stratification and pricing predictions," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1215-1245, July.
- Dennis Epple & David Figlio & Richard Romano, 2000. "Competition Between Private and Public Schools: Testing Stratification and Pricing Predictions," NBER Working Papers 7956, National Bureau of Economic Research, Inc.
- Gianni de Fraja, 2002. "The Design of Optimal Education Policies," Review of Economic Studies, Oxford University Press, vol. 69(2), pages 437-466.
- De Fraja, Gianni, 1998. "The Design of Optimal Education Policies," CEPR Discussion Papers 1792, C.E.P.R. Discussion Papers.
- Daniele Checchi & Giuseppe Bertola, 2001. "Sorting and private education in Italy," Departmental Working Papers 2001-21, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Bertola, Giuseppe & Checchi, Daniele, 2002. "Sorting and Private Education in Italy," CEPR Discussion Papers 3198, C.E.P.R. Discussion Papers.
- Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
- David Card & Alan B. Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
- David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
- Feinstein, Leon & Symons, James, 1999. "Attainment in Secondary School," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 300-321, April.
- Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-984, September.
- Besley, T. & Coate, S., 1989. "Public Provision Of Private Goods And The Redistribution Of Income," Papers 36, Princeton, Woodrow Wilson School - Discussion Paper.
- Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-971, September.
- Vandenberghe, V. & Robin, S., 2004. "Evaluating the effectiveness of private education across countries: a comparison of methods," Labour Economics, Elsevier, vol. 11(4), pages 487-506, August.
- Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March. Full references (including those not matched with items on IDEAS)