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What is a high school worth?: A model of Australian private secondary school fees

Listed author(s):
  • J. N. Lye and J. G. Hirschberg

Over the last few decades there have been significant increases in student enrolments in Australian non-government schools. It has been suggested that this growth has been the outcome of government subsidies to non-government schools. Despite this significant funding school fees have also been increasing. In this paper we examine these changes for Victoria and look at a number of comparisons between government and non-government schools. In addition, rather than examining the determinants of school selection we examine the determinants of fees at non-government schools by estimating a hedonic price model. We conclude that the characteristics of the schools such as university entrance performance do have a positive impact on the fees. In addition, we determine that the socioeconomic status of the other students has a positive impact as well as the scale of the school as measured by the number of staff, the variety of the offerings and the age of the school all have a positive impact.

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Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 1161.

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Length: 24 pages
Date of creation: 2012
Handle: RePEc:mlb:wpaper:1161
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Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia

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  1. Amy Ellen Schwartz & Benjamin Scafidi, 2004. "What's Happened to the Price of College?: Quality-Adjusted Net Price Indexes for Four-Year Colleges," Journal of Human Resources, University of Wisconsin Press, vol. 39(3), pages 723-745.
  2. Harford, Jon D. & Marcus, Richard D., 1986. "Tuition and U.S. private college characteristics: The hedonic approach," Economics of Education Review, Elsevier, vol. 5(4), pages 415-430, August.
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