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Author: Hoxby, Caroline M.
Resulting in 2 citations.
1. Hoxby, Caroline M.
Does Competition among Public Schools Benefit Students and Taxpayers?
American Economic Review 90,5 (December 2000): 1209-1238.
Also: http://www.aeaweb.org/articles.php?doi=10.1257/aer.90.5.1209
Cohort(s): NLSY79
Publisher: American Economic Association
Keyword(s): Education; Endogeneity; Private Schools; Public Sector; Schooling

Permission to reprint the abstract has not been received from the publisher.

Tiebout choice among districts is the most powerful market force in American public education. Naive estimates of its effects are biased by endogenous district formation. I derive instruments from the natural boundaries in a metropolitan area. My results suggest that metropolitan areas with greater Tiebout choice have more productive public schools and less private schooling. Little of the effect of Tiebout choice works through its effect on household sorting. This finding may be explained by another finding: students are equally segregated by school in metropolitan areas with greater and lesser degrees of Tiebout choice among districts.
Bibliography Citation
Hoxby, Caroline M. "Does Competition among Public Schools Benefit Students and Taxpayers?" American Economic Review 90,5 (December 2000): 1209-1238.
2. Hoxby, Caroline M.
Terry, Bridget
Explaining Rising Income and Wage Inequality Among the College Educated
NBER Working Paper No. 6873, National Bureau of Economic Research, January 1999.
Also: http://nber.nber.org/papers/W6873
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): College Education; College Graduates; Demography; Income; Wage Equations; Wage Growth

The incomes and wages of college-educated Americans have become significantly more dispersed since 1970. This paper attempts to decompose this growing dispersion into three possible sources of growth. The first source, or extensive margin, is the increasing demographic diversity of people who attend college. The second is an increasing return to aptitude. The third, or intensive margin,' combines the increasing self-segregation (on the basis of aptitude) of students among colleges and the increasing correlation between the average aptitude of a college's student body and its expenditure on education inputs. These tendencies are the result of changes in the market structure of college education, as documented elsewhere. We find that about 70% of the growth in inequality among recipients of baccalaureate degrees can be explained with observable demographics, measures of aptitude, and college attributes. About 50% of the growth in inequality among people who have 2 years of college education can be similarly explained. Of the growth that can be explained, about 1/4th is associated with the extensive margin, 1/3rd with an increased return to measured aptitude, and 5/12ths with the intensive margin. If the intensive margin is not taken into account, the role of increasing returns to aptitude is greatly overstated.
Bibliography Citation
Hoxby, Caroline M. and Bridget Terry. "Explaining Rising Income and Wage Inequality Among the College Educated." NBER Working Paper No. 6873, National Bureau of Economic Research, January 1999.