The Changing Economic Advantage from Private School

36 Pages Posted: 6 Jul 2010

See all articles by Francis Green

Francis Green

University of Kent - Department of Economics

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); London School of Economics & Political Science (LSE) - Department of Economics

Richard Murphy

London School of Economics & Political Science (LSE)

Yu Zhu

University of Kent - Department of Economics

Abstract

Despite its relatively small size, the private school sector plays a prominent role in British society. This paper focuses on changing wage and education differentials between privately educated and state educated individuals in Britain. It reports evidence that the private/state school wage differential has risen significantly over time, despite the rising cost to sending children to private school. A significant factor underpinning this has been faster rising educational attainment for privately educated individuals. Despite these patterns of change, the proportion attending private school has not altered much, nor have the characteristics of those children (and their parents) attending private school. Taken together, our findings are consistent with the idea that the private school sector has been successful in transforming its ability to generate the academic outputs that are most in demand in the modern economy. Because of the increased earnings advantage, private school remains a good investment for parents who want to opt out, but it also contributes more to rising economic and social inequality.

Keywords: returns to education, private schools

JEL Classification: I22, I29, J31

Suggested Citation

Green, Francis and Machin, Stephen J. and Murphy, Richard and Zhu, Yu, The Changing Economic Advantage from Private School. IZA Discussion Paper No. 5018, Available at SSRN: https://ssrn.com/abstract=1634485

Francis Green (Contact Author)

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

HOME PAGE: http://www.kent.ac.uk/economics/staff/gfg/

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Richard Murphy

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Yu Zhu

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

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