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Title:Diploma No Problem : Can Private Schools Be of Lower Quality than Public Schools? PDF Logo
Authors:Brunello, Giorgio
Rocco, Lorenzo
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1336
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.
Subjects:education
private schools
Italy
JEL:H73
H52
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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