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Selective Schooling Systems Increase Inequality

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  • Burgess, Simon

    (University of Bristol)

  • Dickson, Matt

    (University of Bath)

  • Macmillan, Lindsey

    (University College London)

Abstract

We investigate the impact on earnings inequality of a selective education system in which school assignment is based on initial test scores. We use a large, representative household panel survey to compare adult earnings inequality of those growing up under a selective education system with those educated under a comprehensive system. Controlling for a range of background characteristics and the current location, the wage distribution for individuals who grew up in selective schooling areas is quantitatively more unequal, and the difference is statistically significant. The total effect sizes are large: 14% of the raw 90-10 earnings gap and 18% of the conditional 90-10 earnings gap can be explained by differences across schooling systems.

Suggested Citation

  • Burgess, Simon & Dickson, Matt & Macmillan, Lindsey, 2014. "Selective Schooling Systems Increase Inequality," IZA Discussion Papers 8505, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8505
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    10. repec:bri:cmpowp:13/323 is not listed on IDEAS
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    Cited by:

    1. Simon Burgess & Matt Dickson & Lindsey Macmillan, 2020. "Do selective schooling systems increase inequality?," Oxford Economic Papers, Oxford University Press, vol. 72(1), pages 1-24.
    2. Matt Dickson & Lindsey Macmilllan, 2020. "Inequality in access to grammar schools," CEPEO Briefing Note Series 3, UCL Centre for Education Policy and Equalising Opportunities, revised Apr 2020.
    3. Basu, Anirban & Jones, Andrew M. & Dias, Pedro Rosa, 2018. "Heterogeneity in the impact of type of schooling on adult health and lifestyle," Journal of Health Economics, Elsevier, vol. 57(C), pages 1-14.
    4. Vincenzo Carrieri & Apostolos Davillas & Andrew M. Jones, 2023. "Equality of opportunity and the expansion of higher education in the UK," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 861-885, December.
    5. 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).
    6. Buscha, Franz & Gorman, Emma & Sturgis, Patrick, 2023. "Selective schooling and social mobility in England," Labour Economics, Elsevier, vol. 81(C).
    7. Pastore, Chiara & Jones, Andrew M., 2023. "Human capital consequences of missing out on a grammar school education," Economic Modelling, Elsevier, vol. 126(C).
    8. Simon Burgess & Claire Crawford & Lindsey Macmillan, 2017. "Assessing the role of grammar schools in promoting social mobility," DoQSS Working Papers 17-09, Quantitative Social Science - UCL Social Research Institute, University College London.
    9. Buscha, Franz & Gorman, Emma & Sturgis, Patrick, 2023. "Selective schooling and social mobility in England," LSE Research Online Documents on Economics 118341, London School of Economics and Political Science, LSE Library.
    10. Esser, Hartmut & Relikowski, Ilona, 2015. "Is Ability Tracking (Really) Responsible for Educational Inequalities in Achievement? A Comparison between the Country States Bavaria and Hesse in Germany," IZA Discussion Papers 9082, Institute of Labor Economics (IZA).
    11. Hart, Robert A. & Moro, Mirko, 2017. "Date of Birth and Selective Schooling," IZA Discussion Papers 10949, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    selective schooling; inequality; wages; quantile regression;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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