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A Model of Vertically Differenciated Education

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Author Info
Effinger, M.R.
Polborn, M.K.

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Abstract

We analyse the allocation of students who differ in their ability to two school types when there are peer effects (students learn more the better their classmates) and expected income after school depends also on the average productivity of peers. We derive the allocation under free school choice and decentralized determination of the academic level; we show that, compared to the social optimum, the level is suboptimal and to many students attend the better school type. A social planner can improve on the allocation under free school choice by prescribing a higher academic level.

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Publisher Info
Paper provided by Toulouse - GREMAQ in its series Papers with number 97.469.

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Length: 15 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:gremaq:97.469

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Related research
Keywords: EDUCATION ; EXTERNALITIES;

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Find related papers by JEL classification:
D62 - Microeconomics - - Welfare Economics - - - Externalities
I20 - Health, Education, and Welfare - - Education - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Arnott, Richard & Rowse, John, 1987. "Peer group effects and educational attainment," Journal of Public Economics, Elsevier, vol. 32(3), pages 287-305, April. [Downloadable!] (restricted)
    Other versions:
  2. Henderson, Vernon & Mieszkowski, Peter & Sauvageau, Yvon, 1978. "Peer group effects and educational production functions," Journal of Public Economics, Elsevier, vol. 10(1), pages 97-106, August. [Downloadable!] (restricted)
  3. Betts, Julian R, 1998. "The Impact of Educational Standards on the Level and Distribution of Earnings," American Economic Review, American Economic Association, vol. 88(1), pages 266-75, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hendrik Jürges & Wolfram Richter & Kerstin Schneider, 2004. "Teacher Quality and Incentives: Theoretical and Empirical Effects of Standards on Teacher Quality," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Uschi Backes-Gellner & Stephan Veen, 2006. "Incentives for Schools, Educational Signals and Labour Market Outcomes," Working Papers 0061, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jun 2006. [Downloadable!]
    Other versions:
  3. Volker Meier & Gabriela Schütz, 2007. "The Economics of Tracking and Non-Tracking," Ifo Working Paper Series Ifo Working Papers No. 50, Ifo Institute for Economic Research at the University of Munich. [Downloadable!]
  4. Volker Meier, 2000. "Choosing Between School Systems," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  5. Hendrik Jürges & Kerstin Schneider & Martin Senkbeil & Claus H. Carstensen, 2009. "Assessment Drives Learning: The Effect of Central Exit Exams on Curricular Knowledge and Mathematical Literacy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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This page was last updated on 2009-10-24.

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