- Title Information
- Title
- Is Education Consumption or Investment? Implications for School Competition
- Name
- Name Part
- W. Bentley MacLeod
- Role
- Role Term (marcrelator)
(authorityURI="http://id.loc.gov/vocabulary/relators", valueURI="http://id.loc.gov/vocabulary/relators/aut")
- author
- Name
- Name Part
- Miguel Urquiola
- Role
- Role Term (marcrelator)
(authorityURI="http://id.loc.gov/vocabulary/relators", valueURI="http://id.loc.gov/vocabulary/relators/aut")
- author
- Subject
- Topic
- School choice
- Subject
- Topic
- competition
- Subject
- Topic
- labor market outcomes
- Subject (edworkp)
- Topic
- K-12 Education
- Subject (edworkp)
- Topic
- Markets (vouchers, choice, for-profits, vendors)
- Origin Information
- Date Created
- 2019
- Publisher
- Annenberg Institute for School Reform at Brown University
- Abstract
- Friedman (1955) argued that giving parents freedom to choose schools would improve education. His argument was simple and compelling because it extended results from markets for consumer goods to education. We review the evidence, which yields surprisingly mixed results on Friedman's prediction. A key reason is that households often seem to choose schools based on their absolute achievement rather than their value added. We show this can be rational in a model based on three ingredients economists have highlighted since Friedman worked on the issue. First, education is an investment into human capital (Becker, 1964). Second, labor markets can feature wage premia: individuals of a given skill level may receive higher wages if they match to more productive firms (Card et al., 2018). Third, distance influences school choice and the placements schools produce (Abdulkadiroglu et al., 2017, Weinstein, 2017). These imply that choice alone is too crude a mechanism to ensure the effective provision of schooling.
- Language
- Language Term:
Code (ISO639-2B)
- eng
- Type of Resource
- text
- Genre (aat)
- grey literature
- Related Item:
series
- Title Information
- Title
- edworkingpapers.com
- Related Item
- Identifier:
DOI
- 10.26300/ggvn-av25
- Access Condition:
use and reproduction
(href="http://rightsstatements.org/vocab/InC/1.0/")
- In Copyright