School-level policies and the efficiency and equity trade-off in education

This paper identifies the relationship between pupils’ Family Background, their mathematics scores, and school-level policies, using the 2012 Programme of International Student Assessment for Italy and multilevel modelling. School-level policies have played a leading role in recent school reforms in many countries, but there is no straightforward empirical evidence for how they affect pupils’ outcomes and the equality of educational outcomes. Our findings show that that only some school policies intensify the Family Background Effect – (educational equity) and affect student outcomes (educational efficiency) simultaneously. We find that competitive schools are able to screen students by selecting higher socio-economic status parents, which mainly harms equity without having much effect on efficiency. There are some policies which allow some trade-off between aforementioned objectives, mainly policies related to management schools.