Public school principals are not residual claimants and face no competition, so they keep their jobs regardless of school performance and lack the incentive to care about outcome quality.

causalpending

Speaker

Russ Roberts

Evidence Quote

they're not the residual claimant the phrase we use in economics for the owner of a business who captures some of the gains when it's run well and who suffers when it's run badly

Source

Eric Hanushek on Educational Quality and Economic Growth 8/6/2007EconTalk
Created: 6/17/2026, 10:14:21 AM

My Notes

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