Analyses of market-based reforms of state schooling have occasionally acknowledged positional elements in parental demand, but none has fully examined their nature and implications. Contrary to the normal predictions of orthodox economic analysis, competition in positional markets can result in inefficient outcomes. Predominantly relying upon recent British experience, we examine the extent to which compulsory schooling can be viewed as a positional good and explore its implications for policy. In particular, we consider whether policies targeting increases in parental choice assist (...) a rise in the overall level of educational attainment. (shrink)

We provide an economic assessment of the operation of schooling quasi-markets, re-interpreting the findings of the mainly sociologically-based empirical research. We find that economic analysis is complementary to that of sociology, providing further explanations for the failure of greater competition to increase the diversity of provision and challenge traditional school hierarchies.

We examine the impact of recent policy on the nature of competition within English higher education (HE) for students. Revisions made to the method of allocating Higher Education Funding Council for England (HEFCE) teaching funds and the introduction of performance monitoring and targeted recruitment premiums have changed the incentives facing higher education institutions (HEI)s when designing recruitment strategies. We consider the extent to which the experience of similar market-based reforms on the English secondary schooling system is being replicated in HE. (...) Promoting increased competition by comparison was advocated as a means of stimulating greater allocative, technical and dynamic efficiency in both schools and universities. Similarly, relaxing institutions' capacity constraints and introducing targeted financial incentives have been touted as effective mechanisms to assist the attainment of policy objectives. However, the experience of market-based reforms of state secondary schooling indicates that dysfunctional responses occur and that the overall impact on market behaviour is more complex than anticipated. We consider whether similar processes are evolving in HE. (shrink)

This paper argues that the introduction of access agreements following the establishment of the Office for Fair Access (OFFA) has consolidated how English higher education institutions (HEIs) position themselves in the marketplace in relation to widening participation. However, the absence of a national bursary scheme has led to obfuscation rather than clarification from the perspective of the consumer. This paper analyses OFFA's 2008 monitoring report and a sample of twenty HEIs' original 2006 and revised or updated access agreements (2008) to (...) draw conclusions about the impact of these agreements on notions of 'fair access' and widening participation. The authors conclude that, unsurprisingly in an increasingly market-driven system, institutions use access agreements primarily to promote enrolment to their own programmes rather than to promote system-wide objectives. As a consequence of this marketing focus, previous differences between pre-1992 and post-1992 institutions in relation to widening participation and fair access are perpetuated, leading to both confusion for consumers and an inequitable distribution of bursary and other support mechanisms for the poorest applicants to HE. (shrink)