33 Pages Posted: 14 Mar 2011
Date Written: March 1, 2011
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.
Keywords: Scale economies, School choice, School consolidation, Student achievement
JEL Classification: D40, H75, I21, I22
Suggested Citation: Suggested Citation
de Haan, Monique and Leuven, Edwin and Oosterbeek, Hessel, Scale Economies can Offset the Benefits of Competition: Evidence from a School Consolidation Reform in a Universal Voucher System (March 1, 2011). CEPR Discussion Paper No. DP8272. Available at SSRN: https://ssrn.com/abstract=1782566
This is a CEPR Discussion Paper. CEPR charges a fee of $5.00 for this paper.Login using your CEPR Personal Profile
File name: DP8272.
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.