Consumers’ valuation of academic and deprivation-compensating aspects of school performance in England
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.
Keywords
Acknowledgements
This paper uses material from the authors’ unpublished manuscript “House Prices and School Quality: The Impact of Score and Non-score Components of Contextual Value-Added”, Discussion Paper No. 2010-05, Department of Economics, University of Cyprus, May 2010.
Citation
Andreou, S. (2018), "Consumers’ valuation of academic and deprivation-compensating aspects of school performance in England", International Journal of Social Economics, Vol. 45 No. 4, pp. 661-681. https://doi.org/10.1108/IJSE-03-2017-0062
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited