Consumers’ valuation of academic and deprivation-compensating aspects of school performance in England
Journal
International Journal of Social Economics
Date Issued
2018
Author(s)
DOI
10.1108/IJSE-03-2017-0062
Abstract
Purpose – The purpose of this paper is to investigate the willingness of households to pay for academic and
deprivation-compensating components of the Contextual Value Added (CVA) indicator of school quality used
in England in order to locate themselves in the catchment area of state schools. Deprivation-compensating
school performance, defined as the difference in the disadvantaged intake between two schools with the same
academic performance.
Design/methodology/approach – The empirical analysis, based on data drawn from three independent
UK data sources, used parametric and non-parametric analysis approaches. The analysis conducted
separately for primary and secondary schools, because household behaviour can differ between these two
levels of education.
Findings – 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 deprivation-compensating 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.
Practical implications – The analysis in this study suggested that the recently adopted practice of using
CVA as a measure of school quality in England can encourage government and Local Authorities to pay more
attention to raising the deprivation-compensating aspects of school performance of their schools.
Originality/value – This is the first study to explore the value which households attach to
deprivation-compensating outcomes, at a given level of academic performance using the CVA indicator.
deprivation-compensating components of the Contextual Value Added (CVA) indicator of school quality used
in England in order to locate themselves in the catchment area of state schools. Deprivation-compensating
school performance, defined as the difference in the disadvantaged intake between two schools with the same
academic performance.
Design/methodology/approach – The empirical analysis, based on data drawn from three independent
UK data sources, used parametric and non-parametric analysis approaches. The analysis conducted
separately for primary and secondary schools, because household behaviour can differ between these two
levels of education.
Findings – 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 deprivation-compensating 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.
Practical implications – The analysis in this study suggested that the recently adopted practice of using
CVA as a measure of school quality in England can encourage government and Local Authorities to pay more
attention to raising the deprivation-compensating aspects of school performance of their schools.
Originality/value – This is the first study to explore the value which households attach to
deprivation-compensating outcomes, at a given level of academic performance using the CVA indicator.