Skip to main content

This link is exclusively for students and staff members within this organisation.

Unauthorised use will lead to account termination.

Previous

House prices and income: an application of cross section data

Next

Dealing with a pandemic: understanding the furlough scheme

The schools market: who goes where and why?

Markets often exist even when there is not an obvious price, and other mechanisms can be used to determine how the market clears. In this article, Annika Johnson discusses the mechanisms that are used in the pseudo-market of education

Some schools base their admissions priority on how close students live to school

Every year, parents and guardians of children about to start primary or secondary state schools participate in a market to find their child’s new school. Like markets for any other good or service, there are consumers of education (the pupils) and producers of education (the schools). However, unlike bananas, bricks and banking services, the school a pupil is assigned to and the amount of education consumed is not based on a parent’s (or pupil’s) individual willingness to pay — laws mandate school attendance and make the selling of places in state schools illegal. These laws mean that we cannot use the price mechanism to match pupils with school places and instead we must carefully design a different mechanism to decide who goes where.

the market mechanism, price mechanisms (other than money), market failure, government intervention in markets

Your organisation does not have access to this article.

Sign up today to give your students the edge they need to achieve their best grades with subject expertise

Subscribe

Previous

House prices and income: an application of cross section data

Next

Dealing with a pandemic: understanding the furlough scheme

Related articles: