IDEAS home Printed from https://ideas.repec.org/p/cte/werepe/we1103.html
   My bibliography  Save this paper

Incentives, resources and the organization of the school system

Author

Listed:
  • Albornoz, Facundo
  • Berlinski, Samuel
  • Cabrales, Antonio

Abstract

We study a model where student effort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. We can show, for example, that an improvement in parental outside options will reduce parental and school effort, which are partially compensated through school resources. In this way we provide a rationale for the ambiguous existing empirical evidence on the effect of school resources. We also provide a novel microfoundation for peer effects, with empirical implications on welfare and on preferences for sorting across schools.

Suggested Citation

  • Albornoz, Facundo & Berlinski, Samuel & Cabrales, Antonio, 2011. "Incentives, resources and the organization of the school system," UC3M Working papers. Economics we1103, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:we1103
    as

    Download full text from publisher

    File URL: https://e-archivo.uc3m.es/rest/api/core/bitstreams/92ac6755-1417-4cc3-a4a5-cdd0283a26f6/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 497-532.
    2. Miguel Urquiola & Eric Verhoogen, 2009. "Class-Size Caps, Sorting, and the Regression-Discontinuity Design," American Economic Review, American Economic Association, vol. 99(1), pages 179-215, March.
    3. Michele Boldrin & Ana Montes, 2005. "The Intergenerational State Education and Pensions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 651-664.
    4. Gilat Levy, 2005. "The Politics of Public Provision of Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1507-1534.
    5. Epple, Dennis & Figlio, David & Romano, Richard, 2004. "Competition between private and public schools: testing stratification and pricing predictions," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1215-1245, July.
    6. Esther Duflo & Pascaline Dupas & Michael Kremer, 2011. "Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," American Economic Review, American Economic Association, vol. 101(5), pages 1739-1774, August.
    7. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
    8. Caroline M. Hoxby, 2000. "The Effects of Class Size on Student Achievement: New Evidence from Population Variation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1239-1285.
    9. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
    10. Edwin Leuven & Hessel Oosterbeek & Marte Rønning, 2008. "Quasi‐experimental Estimates of the Effect of Class Size on Achievement in Norway," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 663-693, December.
    11. Miguel Urquiola, 2006. "Identifying Class Size Effects in Developing Countries: Evidence from Rural Bolivia," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 171-177, February.
    12. C. Kirabo Jackson & Elias Bruegmann, 2009. "Teaching Students and Teaching Each Other: The Importance of Peer Learning for Teachers," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 85-108, October.
    13. Dennis Epple & Richard Romano, 2008. "Educational Vouchers And Cream Skimming," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1395-1435, November.
    14. Sean Corcoran & William N. Evans, 2010. "Income Inequality, the Median Voter, and the Support for Public Education," NBER Working Papers 16097, National Bureau of Economic Research, Inc.
    15. Maria Marta Ferreyra, 2007. "Estimating the Effects of Private School Vouchers in Multidistrict Economies," American Economic Review, American Economic Association, vol. 97(3), pages 789-817, June.
    16. McMillan, Robert, 2004. "Competition, incentives, and public school productivity," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1871-1892, August.
    17. Hsieh, Chang-Tai & Urquiola, Miguel, 2006. "The effects of generalized school choice on achievement and stratification: Evidence from Chile's voucher program," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1477-1503, September.
    18. Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall.
    19. Roland Benabou, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 619-652.
    20. C. Kirabo Jackson, 2009. "Student Demographics, Teacher Sorting, and Teacher Quality: Evidence from the End of School Desegregation," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 213-256, April.
    21. Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, July.
    22. Brindusa Anghel & Antonio Cabrales, 2010. "The Determinants of Success in Primary Education in Spain," Working Papers 2010-20, FEDEA.
    23. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fredriksson, Peter & Öckert, Björn & Oosterbeek, Hessel, 2014. "Inside the Black Box of Class Size: Mechanisms, Behavioral Responses, and Social Background," IZA Discussion Papers 8019, Institute of Labor Economics (IZA).
    2. Facundo Albornoz & Antonio Cabrales & Esther Hauk, 2018. "Immigration and the school system," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(4), pages 855-890, June.
    3. Elizabeth Beasley & Elise Huillery, 2015. "Willing but Unable: Short-Term Experimental Evidence on Parent Empowerment and School Quality," SciencePo Working papers hal-03460075, HAL.
    4. Hauk, Esther & Albornoz-Crespo, Facundo, 2014. "Which club should I attend, Dad?: Targeted socialization and production," CEPR Discussion Papers 10321, C.E.P.R. Discussion Papers.
    5. Bandyopadhyay, Siddhartha & Cabrales, Antonio, 2023. "Pricing group membership," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 114-121.
    6. Facundo Albornoz & Samuel Berlinski & Antonio Cabrales, 2018. "Motivation, resources, and the organization of the school system," Journal of the European Economic Association, European Economic Association, vol. 16(1), pages 199-231.
    7. Berlinski, Samuel & Busso, Matias, 2017. "Challenges in educational reform: An experiment on active learning in mathematics," Economics Letters, Elsevier, vol. 156(C), pages 172-175.
    8. repec:spo:wpmain:info:hdl:2441/7o52iohb7k6srk09na40maa99 is not listed on IDEAS
    9. repec:hal:spmain:info:hdl:2441/mmkrke5an8luq9ps90ougrtui is not listed on IDEAS
    10. Kuehn, Zoe & Landeras, Pedro, 2012. "Study Time and Scholarly Achievement in PISA," Working Papers 2012-02, FEDEA.
    11. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, vol. 96(1), pages 237-254.
    12. repec:spo:wpmain:info:hdl:2441/mmkrke5an8luq9ps90ougrtui is not listed on IDEAS
    13. repec:hal:spmain:info:hdl:2441/7o52iohb7k6srk09na40maa99 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Facundo Albornoz & Samuel Berlinski & Antonio Cabrales, 2016. "Motivation, Resources and the Organization of the School System," IDB Publications (Working Papers) 94958, Inter-American Development Bank.
    2. Facundo Albornoz & Samuel Berlinski & Antonio Cabrales, 2018. "Motivation, resources, and the organization of the school system," Journal of the European Economic Association, European Economic Association, vol. 16(1), pages 199-231.
    3. Chakrabarti, Rajashri, 2013. "Do vouchers lead to sorting under random private school selection? Evidence from the Milwaukee voucher program," Economics of Education Review, Elsevier, vol. 34(C), pages 191-218.
    4. repec:clu:wpaper:0607-14 is not listed on IDEAS
    5. Bastos, Paulo & Cristia, Julian P., 2010. "Entry and Quality Choices in Child Care Markets," IDB Publications (Working Papers) 3029, Inter-American Development Bank.
    6. Miguel Urquiola & Eric Verhoogen, 2009. "Class-Size Caps, Sorting, and the Regression-Discontinuity Design," American Economic Review, American Economic Association, vol. 99(1), pages 179-215, March.
    7. Bastos, Paulo & Cristia, Julian, 2012. "Supply and quality choices in private child care markets: Evidence from São Paulo," Journal of Development Economics, Elsevier, vol. 98(2), pages 242-255.
    8. Michela Tincani, 2014. "School Vouchers and the Joint Sorting of Students and Teachers," Working Papers 2014-012, Human Capital and Economic Opportunity Working Group.
    9. Masakazu Hojo, 2011. "Education Production Function and Class-Size Effects in Japanese Public Schools," Global COE Hi-Stat Discussion Paper Series gd11-194, Institute of Economic Research, Hitotsubashi University.
    10. Zhang, Yu & Qin, Fei & Liu, Juanjuan, 2019. "Improving education equality and quality: Evidence from a natural experiment in China," International Journal of Educational Development, Elsevier, vol. 70(C), pages 1-1.
    11. Joseph G. Altonji & Ching-I Huang & Christopher R. Taber, 2015. "Estimating the Cream Skimming Effect of School Choice," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 266-324.
    12. Vincenzo Andrietti & Xuejuan Su, 2019. "Education curriculum and student achievement: theory and evidence," Education Economics, Taylor & Francis Journals, vol. 27(1), pages 4-19, January.
    13. Peter Fredriksson & Björn Öckert & Hessel Oosterbeek, 2013. "Long-Term Effects of Class Size," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 249-285.
    14. Maximilian Bach & Stephan Sievert, 2019. "Birth Cohort Size Variation and the Estimation of Class Size Effects," Discussion Papers of DIW Berlin 1817, DIW Berlin, German Institute for Economic Research.
    15. Fredriksson, Peter & Öckert, Björn & Oosterbeek, Hessel, 2014. "Inside the Black Box of Class Size: Mechanisms, Behavioral Responses, and Social Background," IZA Discussion Papers 8019, Institute of Labor Economics (IZA).
    16. Miguel Urquiola, 2015. "Progress and challenges in achieving an evidence-based education policy in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-30, December.
    17. Joshua D. Angrist & Victor Lavy & Jetson Leder-Luis & Adi Shany, 2019. "Maimonides' Rule Redux," American Economic Review: Insights, American Economic Association, vol. 1(3), pages 309-324, December.
    18. Christian Ferreda & Matías Tapia, 2010. "Redistributive Taxation, Incentives, and the Intertemporal Evolution of Human Capital," Documentos de Trabajo 390, Instituto de Economia. Pontificia Universidad Católica de Chile..
    19. Nicolai T. Borgen & Lars J. Kirkebøen & Andreas Kotsadam & Oddbjørn Raaum, 2022. "Do funds for more teachers improve student outcomes?," Discussion Papers 982, Statistics Norway, Research Department.
    20. Cohen-Zada, Danny & Gradstein, Mark & Reuven, Ehud, 2013. "Allocation of students in public schools: Theory and new evidence," Economics of Education Review, Elsevier, vol. 34(C), pages 96-106.
    21. Vegas, E & Ganimian, A. J., 2013. "Theory and Evidence on Teacher Policies in Developed and Developing Countries," Working Paper 104291, Harvard University OpenScholar.

    More about this item

    Keywords

    Education;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cte:werepe:we1103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Poveda (email available below). General contact details of provider: http://www.eco.uc3m.es/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.