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Location Choices of Swedish Independent Schools: How Does Allowing for Private Provision Affect the Geography of the Education Market?

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This paper studies the location decisions of Swedish start-up independent schools. It makes use of the great expansion of independent schools following a reform implemented in 1992 to test what local market characteristics are correlated with independent school entry. The results suggest that independent schools are more likely to choose locations with a higher share of students with high-educated parents; a higher student population density; and a lower share of students with Swedish-born parents. There is also some evidence that independent schools are less likely to locate in municipalities with a left-wing political majority. These results are robust to various alternative and flexible definitions of local school markets, which were employed in order to alleviate the Modifiable Areal Unit Problem. For some of the included variables, the definition of the local market however had a large impact on the results, suggesting that the issue of how to define regions in spatial analyses can be important.

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  • Edmark, Karin, 2018. "Location Choices of Swedish Independent Schools: How Does Allowing for Private Provision Affect the Geography of the Education Market?," Working Paper Series 1244, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1244
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    1. Rincke, Johannes, 2007. "Policy diffusion in space and time: The case of charter schools in California school districts," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 526-541, September.
    2. Nirav Mehta, 2017. "Competition In Public School Districts: Charter School Entry, Student Sorting, And School Input Determination," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(4), pages 1089-1116, November.
    3. Thomas A. Downes & Shane M. Greenstein, 1996. "Understanding the Supply Decisions of Nonprofits: Modelling the Location of Private Schools," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 365-390, Summer.
    4. Kyle Koller & David M. Welsch, 2017. "Location decisions of charter schools: an examination of Michigan," Education Economics, Taylor & Francis Journals, vol. 25(2), pages 158-182, March.
    5. Barrow, Lisa, 2006. "Private school location and neighborhood characteristics," Economics of Education Review, Elsevier, vol. 25(6), pages 633-645, December.
    6. Ferreyra, Maria Marta & Kosenok, Grigory, 2018. "Charter school entry and school choice: The case of Washington, D.C," Journal of Public Economics, Elsevier, vol. 159(C), pages 160-182.
    7. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
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    1. Karin Edmark, 2019. "Location choices of Swedish independent schools," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 219-239, August.

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    More about this item

    Keywords

    Private provision; Mixed markets; Education sector; Modifiable Areal Unit Problem;
    All these keywords.

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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