Motivation, Resources and the Organization of the School System

39 Pages Posted: 25 Apr 2017

See all articles by Facundo Albornoz

Facundo Albornoz

University of Birmingham

Samuel Berlinski

Inter-American Development Bank (IDB)

Antonio Cabrales

University College London - Department of Economics

Date Written: July 2016

Abstract

This paper studies a model where student effort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. It can show, for example, that an improvement in parental outside options will reduce parental and school effort, which are partially compensated through school resources. In this way, by incorporating the behavioral responses of parents, teachers and policymakers, the paper provides a rationale for the existing ambiguous empirical evidence on the effect of school resources. The paper also provides a novel microfoundation for peer effects, with empirical implications for welfare and different education policies.

Keywords: Education, Incentives, School resources, Parental involvement, School sorting, Peer effects

JEL Classification: I20, I21, I28, J24

Suggested Citation

Albornoz, Facundo and Berlinski, Samuel and Cabrales, Antonio, Motivation, Resources and the Organization of the School System (July 2016). IDB Working Paper No. IDB-WP-708. Available at SSRN: https://ssrn.com/abstract=2956696 or http://dx.doi.org/10.2139/ssrn.2956696

Facundo Albornoz (Contact Author)

University of Birmingham ( email )

Economics Department
Birmingham, B15 2TT
United Kingdom

Samuel Berlinski

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Antonio Cabrales

University College London - Department of Economics ( email )

Drayton House, 30 Gordon Street
30 Gordon Street
London, WC1H 0AX
United Kingdom

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