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Good schools or good students? The importance of selectivity for school rankings

ABSTRACT This paper uses a rich set of student background characteristics to estimate the value added of second-level schools in Ireland. We show that there is a considerable degree of reranking of schools when we move from analysing raw outcomes to value added; in many cases the best performing schools in raw terms are not the best in value-added terms. We show that, contrary to popular perception, fee-paying schools do not add higher value than other schools. A simulation exercise suggests that if parents chose the best value-added school from among the set of feasible schools, then this reallocation of students has the potential to increase academic achievement substantially.