Diploma No Problem: Can Private Schools Be of Lower Quality than Public Schools?

No 1336, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Motivated by anecdotal as well as econometric evidence from Italy, we ask whether private schools can provide lower quality than public schools. Using a stylized model of the education market with sequential entry of a public and a private school, we show that, depending on the underlying parameters of the model, a market structure with the private school offering at a positive price lower quality than the public school can be an equilibrium. The calibrated parameters for Italy suggest the existence of such an equilibrium in the Italian market for education.

Keywords: private schools; education; Italy (search for similar items in EconPapers)
JEL-codes: H52 H73 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2004-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published as 'Educational standards in private and public schools' in: The Economic Journal, 2008, 118 (533), 1866-1887

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