Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 03-2: Evaluating Private School Quality in Denmark

Beatrice Schindler Ragnvid ()
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Beatrice Schindler Ragnvid: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Abstract: We estimate the private school effect on years of schooling attained. Single equation models show no significant effect of private schooling, while selectivity correction renders the estimate negative, but still insignificant. Results from estimations of different private school types reveal significant positive and negative coefficients in single equation models, which are reduced and rendered insignificant by IV estimation. Also, we show how our extensive set of controls reduces omitted variables bias potentially present in studies with more limited data sets that are typical for this literature. Including additional controls eliminates the significant positive OLS private school effect from a more simple model.

45 pages, February 1, 2003

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