Diversity, choice and the quasi-market: An empirical analysis of secondary education policy in England

This paper investigates the extent to which exam performance at the end of compulsory education has been affected by three major education reforms: the introduction of a quasi-market following the Education Reform Act (1988); the specialist schools initiative introduced in 1994; and the Excellence in Cities programme introduced in 1999. We use data for all state-funded secondary schools in England over the period 1992-2006. The empirical analysis, which is based on the application of panel data methods, indicates that the government and its agencies have substantially overestimated the benefits flowing from these three major reforms. Only about one-third of the improvement in GCSE exam scores during 1992-2006 is directly attributable to the combined effect of the education reforms. The distributional consequences of the policy, however, are estimated to have been favourable, with the greatest gains being achieved by schools with the highest proportion of pupils from poor families. But there is evidence that resources have not been allocated efficiently. * We thank participants in seminars at Lancaster, Piacenza and Queensland Universities, the ICRIER in Delhi and IIT-Karagpur in Kolkata for helpful comments. The authors are grateful to the Department for Education and Skills (now the Department for Children, Schools and Families) for providing the data and to the Nuffield Foundation for supporting the research reported in this paper. The authors alone are responsible for all errors and omissions.