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Title:Scale economies can offset the benefits of competition: Evidence from a school consolidation reform in a universal voucher system PDF Logo
Authors:de Haan, Monique
Leuven, Edwin
Oosterbeek, Hessel
Issue Date:2011
Series/Report no.:Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5528
Abstract:A large school consolidation reform in the Netherlands changed minimum school size rules underlying public funding. The supply of schools decreased by 15 percent, but this varied considerably across municipalities. We find that reducing the number of schools by 10 percent increases pupils' achievement by 3 percent of a standard deviation. A reduction in the supply of schools implies, for a given number of pupils, an increase in average school size. We present evidence that in our context scale economies dominated the effects of choice and competition. This points to an often ignored trade-off between scale and competition.
Subjects:school choice
competition
school consolidation
achievement
economies of scale
JEL:I21
I22
H75
D40
Persistent Identifier of the first edition:urn:nbn:de:101:1-201104114023
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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