Does private education pay off?

Andrés Rodríguez-Pose and Rosalie Henry de Frahan

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Education plays a crucial role in promoting innovation, entrepreneurship, and equal opportunities in society, acting as a “social elevator.” However, an inequitable educational system can perpetuate inequalities, leading to significant social consequences. This paper examines two mechanisms through which schooling systems may generate or reinforce inequalities: private schooling and school composition. Earlier studies often suggested that private schooling, particularly government-dependent private schools, had a positive impact on student achievement. However, more recent research has challenged this view, highlighting the importance of contextual factors such as school composition and socio-economic background. Building on these findings, our analysis explores how the advantages attributed to private schools are shaped by the demographic profiles of their students. Using data from the OECD Program for International Student Assessment (PISA) 2015 and employing an education production function, we assess the effects of private schooling and school composition on student performance. Our findings contribute to the growing body of research questioning the comparative advantage of private schools, demonstrating that their perceived superiority often arises from the socio-economic advantages of the students they enroll, rather than the quality of education provided. The study also reveals significant variations across countries, underscoring the urgent need to address the segregation issues linked to private school networks.

Keywords: education; private schooling; school composition effect; segregation; inequalities (search for similar items in EconPapers)
JEL-codes: H52 I21 I28 J24 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2024-12-31
New Economics Papers: this item is included in nep-ure
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Published in Annals of Regional Science, 31, December, 2024, 73(4), pp. 1409 - 1434. ISSN: 0570-1864

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http://eprints.lse.ac.uk/125628/ Open access version. (application/pdf)

Related works:
Journal Article: Does private education pay off? (2024)
Working Paper: Does private education pay off? (2024)
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