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Meier, Volker (2000): Choosing Between School Systems. CESifo Working Paper, 389
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Abstract

Hierarchical and comprehensive school systems are compared with respect to efficiency. At given ability, a student?s probability of not completing school rises with increasing mean ability in class. Both school systems can yield identical average failure rates. Given that output losses in case of failure are stronger for more talented students, the comprehensive school system will generally lead to a higher total income.