The Changing Economic Advantage from Private School

(2010) - Francis Green, Stephen J. Machin, Richard Murphy, Yu Zhu

Journal: SSRN Electronic Journal
Link:: https://www.ssrn.com/abstract=1634485
DOI:: 10.2139/ssrn.1634485
Links::
Tags:: #paper #NCDS #SchoolType #Attainment
Cite Key:: [@Green2010]

Abstract

Private schools in the UK, though far less numerous than state schools, have for a long time played a very prominent role in the UK‟s economy and society. There is ample evidence that private school attendance generates significant economic advantages later on in life as individuals earn more in the labour market and are more likely to get top jobs. But we know very little about how the economic and social impact of private education has evolved. In this paper we provide empirical evidence on the extent to which private/state school wage and education differentials have changed over time. Rising wage inequality and falling social mobility form the backdrop. Reasons to expect an increasing advantage for private school pupils over the last several decades include the internal transformation of private schools with an increasing emphasis on academic achievements, and the substantive rises in the resources available, supported by increasing real fees which, in the context of the emergent knowledge economy and rising female labour force participation, parents were willing to pay.

Notes

“Our estimates imply that half the rise in the earnings differential can be attributed to the improved qualifications being achieved in private schools.” (Green et al., 2010, p. 3)