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School Quality and School Location

Author

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  • Terry O'Shaughnessy

Abstract

This paper presents a model of school choice with peer effects and scale economies within schools. Parents` perception of school quality depends on resources and on the characteristics of the student body. A network of local schools of uniform quality will be optimal, even though different households prefer different qualities. Whether schools of different qualities emerge depends on the strength of peer effects. If peer effects are strong there will be an incentive for existing schools to select for ability and for new selective schools - state funded and private - to enter. To discourage bifurcation of the school system into different qualities, peer effects could be weakened, say by grouping students by ability within schools (`setting`, `streaming` or `tracking`).

Suggested Citation

  • Terry O'Shaughnessy, 2000. "School Quality and School Location," Economics Series Working Papers 50, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:50
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    File URL: https://ora.ox.ac.uk/objects/uuid:6b63e7c0-004c-4278-b432-a4e938f647e8
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    More about this item

    Keywords

    education; school choice; peer effects;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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