Consumers’ Valuation of Academic and Equality-inducing Aspects of School Performance in England
Date Issued
June 2013
Author(s)
Abstract
This paper investigates the willingness of households to pay for academic and
equality-inducing (deprivation-compensating) components of the Contextual Value
Added (CVA) indicator of school quality used in England. Semi-parametric and
parametric analysis shows that consumers are willing to pay for houses in the
catchment area of primary and secondary schools with high academic achievement,
as measured by the mean score; whereas, the component of the CVA indicating
equality-inducing aspects of school performance is found to have a positive effect
only on the price of houses in the catchment area of primary schools in London; its
impact on the price of houses elsewhere is mostly negative. The role played by the
CVA as a guide to choosing a school and the implications which our results can have
for school funding are considered.
equality-inducing (deprivation-compensating) components of the Contextual Value
Added (CVA) indicator of school quality used in England. Semi-parametric and
parametric analysis shows that consumers are willing to pay for houses in the
catchment area of primary and secondary schools with high academic achievement,
as measured by the mean score; whereas, the component of the CVA indicating
equality-inducing aspects of school performance is found to have a positive effect
only on the price of houses in the catchment area of primary schools in London; its
impact on the price of houses elsewhere is mostly negative. The role played by the
CVA as a guide to choosing a school and the implications which our results can have
for school funding are considered.