Motivation, Resources and the Organisation of the School Sector

FACUNDO ALBORNOZ; ANTONIO CABRALES; SAMUEL BERLINSKY

Journal of the European Economic Association

European Economic Association

Año: 2018 vol. 16 p. 199 - 231

This paper studies a model where student eort 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 eects, with empirical implications for welfare and different education policies