Machine generated contents note: List of illustrations x -- Preface xi --1 The economic theory of schooling markets: an introduction 1 -- 1.1 Introduction 1 -- 1.2 Strengths and limitations of the economic analysis of schooling markets 3 -- 1.3 The market mechanism 6 -- 1.4 The critique of public schooling 8 -- 1.5 Schooling markets 10 -- 1.6 Government intervention in schooling markets 16 -- 1.7 Quasi-market reforms: an introduction 22 -- 1.8 Plan of the remaining chapters 25 --2 Education and the economy: examining the context of schooling markets 27 -- 2.1 Introduction 27 -- 2.2 Government spending on education 29 -- 2.3 Education and economic performance 33 -- 2.4 Education and the 'knowledge-based economy' 37 -- 2.5 Education and labour market inequality 40 -- 2.6 Education and labour market discrimination 42 -- 2.7 Education and social exclusion 45 -- 2.8 Conclusions 46 --3 Parents, pupils, schools and teachers: the microeconomics of schooling 48 -- 3.1 Introduction 48 -- 3.2 Choosing an education: parents and pupils 50 -- 3.3 The process of education in schools 62 -- 3.4. Conclusions 81 -- 4 Market reforms: funding and open enrollment 84 -- 4.1 Introduction 84 -- 4.2 The variety of market forces in schooling provision 85 -- 4.3 Sources of school funding 87 -- 4.4 Funding via central government or local community 88 -- 4.5 Private sector sponsorship 89 -- 4.6 Parents paying for schooling 94 -- 4.7 Open enrollment systems 98 -- 4.8 Voucher systems 100 -- 4.9 For-profit versus not-for-profit schools 105 -- 4.10 Conclusions 107 --5 Market reforms: parental choice in an open enrollment system 109 -- 5.1 Introduction 109 -- 5.2 The choices provided by quasi-markets in schooling 110 -- 5.3 Who chooses: parent or child? 112 -- 5.4 Methodological issues in researching school choice 113 -- 5.5 Policy questions on parental choice 115 -- 5.6 Ambiguity in current research evidence 118 -- 5.7 Are extemalities internalised? 122 -- 5.8 Are choices mainly driven by consumption or investment demand? 125 -- 5.9 Do parents prioritise peer group characteristics or school effectiveness? 129 -- 5.10 Are parents significantly influenced by the level of school resourcing? 131 -- 5.11 Do parents have access to the information they need and do they interpret information accurately? 132 -- 5.12 How important is school location? 133 -- 5.13 Do parents want different schools? 134 -- 5.14 How representative are parents who send their child to an out-ofneighbourhood school? 135 -- 5.15 Conclusions 136 --6 Market reforms: licensing, training and remuneration of teachers 138 -- 6.1 Introduction 138 -- 6.2 Teachers: some international comparisons 140 -- 6.3 Occupational licensing 141 -- 6.4 Teacher training and recruitment 142 -- 6.5 Systems of teachers'pay 144 -- 6.6 Conclusions: proletarianisation or changing professional norms? 157 --7 Governance, monitoring and performance indicators 159 -- 7.1 Introduction 159 -- 7.2 Changingthegovernance structure 162 -- 7.3 Performance monitoring: theory and practice 170 -- 7.4 Conclusions 180 --8 Schools in the market place 181 -- 8.1 Introduction 181 -- 8.2 Productive efficiency 181 -- 8.3 Stratification 191 -- 8.4 Diversity and specialisation 202 -- 8.5 Conclusions 210 --9 Conclusions 213 -- 9.1 Introduction 213 -- 9.2 A review of our arguments 214 9.3 Three key policy questions 218 -- 9.4 Generating beneficial co-opetition in local schooling markets 221 --References 224 -- Index 249

1. Education -- Economic aspects -- Cross-cultural studies
2. Public schools -- Cross-cultural studies
3. School choice -- Cross-cultural studies
4. Educational change -- Cross-cultural studies
5. Electronic books.