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2012-12-19

Adverse selection in choosing schools

Comments on KEVIN DONNELLY “Schools forced to dance to Canberra's centralist tune”, 19/12/2012, http://www.theaustralian.com.au/national-affairs/opinion/schools-forced-to-dance-to-canberras-centralist-tune/story-e6frgd0x-1226539986534

Let's accept the argument that Australia's Catholic and private schools have performed well internationally and this is not the case for government schools.

Apart from differences in freedom in areas of decision making by schools mentioned in the article, another possible reason could be the so called adverse selection problem, in which wealth and family backgrounds may play a role in selecting going to government or non-government schools.

This should only need to be interpreted as on average, rather than a rule applies to all individual cases.

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