&gt;&gt;The obvious counter example is the US, where public schooling is sectioned off by neighborhood and rich kids still attend school together because they can afford to live in their respective neighborhoods.<p>This happens in the UK too. People who are unwilling to send their children to private school will instead move to a more expensive house because it is in the catchment area of a good school. This is morally equivalent to using extra money to sending your child to a private school.