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The Rate of Return to Private Schooling

Author Info

  • Wright, Robert E.

    ()

    (University of Strathclyde)

Abstract

This paper examines the relationship between "school quality" and earnings in the United Kingdom. The specific focus is on evaluating the effect that private schooling has on hourly wage rates. It is well known that private (i.e. fee-paying) schools compared to state schools score higher on most measures of school quality. Therefore by comparing individuals with private schooling to those with state schooling (and controlling for other variables) it is possible to indirectly evaluate the effect of school quality. Panel data from five waves of the British Household Panel Survey are used in the analysis.

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File URL: http://ftp.iza.org/dp92.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 92.

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Length: 22 pages
Date of creation: Dec 1999
Date of revision:
Handle: RePEc:iza:izadps:dp92
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Keywords: Private education; school quality; earnings;

Find related papers by JEL classification:

  • I2 - Health, Education, and Welfare - - Education

This paper has been announced in the following NEP Reports:

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  1. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-86, December.
  2. Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
  3. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, vol. 73(5), pages 928-46, December.
  4. Hanushek, Eric A & Rivkin, Steven G & Taylor, Lori L, 1996. "Aggregation and the Estimated Effects of School Resources," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 611-27, November.
  5. 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.
  6. Betts, Julian R, 1995. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 231-50, May.
  7. David Card & Alan B. Krueger, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 151-200.
  8. Moon-Kak Kim & Solomon W. Polachek, 1994. "Panel Estimates of Male-Female Earnings Functions," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 406-428.
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Cited by:

  1. Brunello, Giorgio & Checchi, Daniele, 2005. "School quality and family background in Italy," Economics of Education Review, Elsevier, vol. 24(5), pages 563-577, October.
  2. Sebastian Calonico & Hugo Ñopo, 2007. "Retornos a la Educación Privada en Perú," Research Department Publications 4517, Inter-American Development Bank, Research Department.
  3. Antonio Caparrós Ruiz & Lucía Navarro Gómez & Mario Rueda Narváez, 2010. "Endogenous wage determinants and returns to education in Spain," International Journal of Manpower, Emerald Group Publishing, vol. 31(4), pages 410-425, July.
  4. Claire Crawford & Anna Vignoles, 2014. "Heterogeneity in graduate earnings by socio-economic background," IFS Working Papers W14/30, Institute for Fiscal Studies.
  5. Calónico, Sebastián & Nopo, Hugo R., 2007. "Returns to Private Education in Peru," IZA Discussion Papers 2711, Institute for the Study of Labor (IZA).
  6. Andersson, Fredrik & Konrad, Kai A., 2002. "Taxation and education investment in the tertiary sector
    [Besteuerung und Bildungsinvestitionen im tertiären Sektor]    ," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-17, Social Science Research Center Berlin (WZB).
  7. Fertig, Michael & Schmidt, Christoph M., 2000. "Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective," IZA Discussion Papers 182, Institute for the Study of Labor (IZA).
  8. Bonin, Holger & Zimmermann, Klaus F., 2000. "The Post-Unification German Labor Market," IZA Discussion Papers 185, Institute for the Study of Labor (IZA).
  9. Rana, Ejaz Ali Khan & Ali, Karamat, 2002. "Private schooling - a quality puzzle," MPRA Paper 34792, University Library of Munich, Germany.

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