Arbeitspapier

Educational standards in private and public schools

We show that, when school quality is measured by the educational standard and attaining the standard requires costly effort, secondary education needs not be a hierarchy with private schools offering better quality than public schools, as in Epple and Romano, 1998. An alternative configuration, with public schools offering a higher educational standard than private schools, is also possible, in spite of the fact that tuition levied by private schools is strictly positive. In our model, private schools can offer a lower educational standard at a positive price because they attract students with a relatively high cost of effort, who would find the high standards of the public school excessively demanding. With the key parameters calibrated on the available micro-econometric evidence from the US, our model predicts that majority voting in the US supports a system with high quality private schools and low quality public schools, as assumed by Epple and Romano, 1998. This system, however, is not the one that would be selected by the social planner, who prefers high quality public schools combined with low quality private schools.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 1418

Classification
Wirtschaft
Publicly Provided Private Goods
Human Capital; Skills; Occupational Choice; Labor Productivity
Subject
private schools
public schools
majority voting
Bildungsniveau
Privatschule
Schule
Bildungsverhalten
Schulpolitik
Wahlsystem
Theorie
Vereinigte Staaten

Event
Geistige Schöpfung
(who)
Brunello, Giorgio
Rocco, Lorenzo
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2005

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Brunello, Giorgio
  • Rocco, Lorenzo
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2005

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