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Political Economy Commons

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2006

Community choice; School choice; Stratification; Hierarchy of school qualities

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Full-Text Articles in Political Economy

The Existence Of Non-Elite Private Schools, Francisco Martinez Mora Sep 2006

The Existence Of Non-Elite Private Schools, Francisco Martinez Mora

Francisco Martinez-Mora

We provide an explanation to the puzzle of the existence of paid-for private schools that offer lower quality education than some tuition-free public alternatives. We consider a model of a city composed of two communities: the urban area and the suburbs. The suburban public school provides higher quality education at an implicit price: the higher tax burden plus a housing rent premium. If that price is high enough and the urban public school has a sufficiently low quality, intermediate income households live in the urban area and use a private school. Intermediate quality private schools, then, exist to serve these ...