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What is the ROI of private education?
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Many high-income people spend significant amounts of money sending their children to private schools. Tuition is often quite costly, approaching the levels of private university education.

However, my read of the literature is that the impacts are unlikely to justify this expense. For example, Chetty et al estimate that a 1 SD change in teacher quality is associated with a 1% increase in income at age 28. This doesn't seem high enough to justify the costs.

Am I missing something? Or is the elite private schools a totally different picture?

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Behavioral Economics

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10 years ago