Selective Schooling Systems Increase Inequality

39 Pages Posted: 4 Oct 2014

See all articles by Simon M. Burgess

Simon M. Burgess

University of Bristol - Department of Economics; University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Matthew Dickson

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

Lindsey Macmillan

University of Bristol

Abstract

We investigate the impact on earnings inequality of a selective education system in which school assignment is based on initial test scores. We use a large, representative household panel survey to compare adult earnings inequality of those growing up under a selective education system with those educated under a comprehensive system. Controlling for a range of background characteristics and the current location, the wage distribution for individuals who grew up in selective schooling areas is quantitatively more unequal, and the difference is statistically significant. The total effect sizes are large: 14% of the raw 90-10 earnings gap and 18% of the conditional 90-10 earnings gap can be explained by differences across schooling systems.

Keywords: selective schooling, inequality, wages, quantile regression

JEL Classification: I24, J31

Suggested Citation

Burgess, Simon and Dickson, Matthew and Macmillan, Lindsey, Selective Schooling Systems Increase Inequality. IZA Discussion Paper No. 8505. Available at SSRN: https://ssrn.com/abstract=2505367

Simon Burgess (Contact Author)

University of Bristol - Department of Economics ( email )

8 Woodland Road
Bristol BS8 ITN
United Kingdom
+44 117 928 8436 (Phone)
+44 117 928 8577 (Fax)

HOME PAGE: http://www.bris.ac.uk/Depts/Economics/department/profiles/burgess.htm

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

12 Priory Road
Bristol BS8 1TN
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Matthew Dickson

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO) ( email )

12 Priory Road
Bristol BS8 1TN
United Kingdom

Lindsey Macmillan

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, BS8 ITH
United Kingdom

HOME PAGE: http://www.bris.ac.uk/depts/CMPO/people/biomacmillan.htm

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