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Entry into the Schooling Market: How is the Behaviour of Private Suppliers Influenced by Public Sector Decisions?
Author(s) -
Downes Thomas A.,
Greenstein Shane M.
Publication year - 2002
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/1467-8586.00156
Subject(s) - private sector , school choice , economics , private school , private education , demographic economics , public economics , business , labour economics , economic growth , higher education , market economy
This research examines the location choice of private schools entering the California schooling market in 1979–80. We find that entrants are more likely to locate in public school districts with lower levels of per–pupil expenditure and higher fractions of public school students who reside in low–income households. In addition, we provide evidence of differences in the responsiveness of different types of private schools to the underlying conditions. Also, in comparing our results to those of previous research, we find that the determinants of the location choices of entrants appear to be the same as the determinants of the location pattern of incumbent private schools.