(Translated by https://www.hiragana.jp/)
In 'Trusts' We Trust: Socially Motivated Private Schools in Nepal
IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp8270.html
   My bibliography  Save this paper

In 'Trusts' We Trust: Socially Motivated Private Schools in Nepal

Author

Listed:
  • Pal, Sarmistha

    (University of Surrey)

  • Saha, Bibhas

    (University of East Anglia)

Abstract

We study school choice and school efficiency in terms of secondary school completion test scores by utilizing a unique database from Nepal. There are two novel features of our analysis: firstly we allow for heterogeneity among private schools, by distinguishing socially motivated trust-run schools from profit-motivated company-run schools, and secondly, we include school's expenditure as a determinant of its efficiency per unit of cost. We find that when expenditure is not included, the trust-run school comes on top, slightly but distinctly, ahead of the profit-motivated school. But if expenditure is included, the trust-run school's position becomes sensitive to the level of expenditure, as it is the only school to exhibit sensitivity between expenditure and test score. In the urban area, the public school is always at the bottom, and between the two types of the private school the trust-run school ranks first (second) at high (low) levels of expenditure. However, in the rural area it is a three way race, with the trust school coming on top again at high expenditure, but falling to bottom at low levels of expenditure. This picture is fairly robust to considerations of subject fixed effects and to inclusion or exclusion of private aided schools or private tuition. We show both theoretically and empirically that socially motivated schools can be efficient and outperform profit-motivated schools.

Suggested Citation

  • Pal, Sarmistha & Saha, Bibhas, 2014. "In 'Trusts' We Trust: Socially Motivated Private Schools in Nepal," IZA Discussion Papers 8270, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8270
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp8270.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jimenez, E. & Lockheed, M.E., 1995. "Public and Private Secondary Education in Developing Countries. A Comparative Study," World Bank - Discussion Papers 309, World Bank.
    2. Kingdon, Geeta, 1996. "The Quality and Efficiency of Private and Public Education: A Case-Study of Urban India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 57-82, February.
    3. Fiona Steele & Anna Vignoles & Andrew Jenkins, 2007. "The effect of school resources on pupil attainment: a multilevel simultaneous equation modelling approach," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(3), pages 801-824, July.
    4. David Newhouse & Kathleen Beegle, 2006. "The Effect of School Type on Academic Achievement: Evidence from Indonesia," Journal of Human Resources, University of Wisconsin Press, vol. 41(3).
    5. Besley, Timothy & Ghatak, Maitreesh, 2007. "Retailing public goods: The economics of corporate social responsibility," Journal of Public Economics, Elsevier, vol. 91(9), pages 1645-1663, September.
    6. Rajeev Dehejia & Thomas DeLeire & Erzo F. P. Luttmer & Josh Mitchell, 2007. "The Role of Religious and Social Organizations in the Lives of Disadvantaged Youth," NBER Chapters, in: The Problems of Disadvantaged Youth: An Economic Perspective, pages 237-274, National Bureau of Economic Research, Inc.
    7. Holmlund, Helena & McNally, Sandra & Viarengo, Martina, 2010. "Does money matter for schools?," Economics of Education Review, Elsevier, vol. 29(6), pages 1154-1164, December.
    8. Alan B. Krueger, 2003. "Economic Considerations and Class Size," Economic Journal, Royal Economic Society, vol. 113(485), pages 34-63, February.
    9. Jimenez, Emmanuel & Lockheed, Marlaine E & Paqueo, Vicente, 1991. "The Relative Efficiency of Private and Public Schools in Developing Countries," The World Bank Research Observer, World Bank, vol. 6(2), pages 205-218, July.
    10. Karthik Muralidharan & Venkatesh Sundararaman, 2013. "The Aggregate Effect of School Choice: Evidence from a Two-stage Experiment in India," NBER Working Papers 19441, National Bureau of Economic Research, Inc.
    11. Chudgar, Amita & Quin, Elizabeth, 2012. "Relationship between private schooling and achievement: Results from rural and urban India," Economics of Education Review, Elsevier, vol. 31(4), pages 376-390.
    12. Eric A. Hanushek, 2003. "The Failure of Input-Based Schooling Policies," Economic Journal, Royal Economic Society, vol. 113(485), pages 64-98, February.
    13. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    14. Jimenez, Emmanuel & Lockheed, Marlaine & Wattanawaha, Nongnuch, 1988. "The Relative Efficiency of Private and Public Schools: The Case of Thailand," The World Bank Economic Review, World Bank, vol. 2(2), pages 139-164, May.
    15. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gómez Soler, Silvia C., 2016. "Educational achievement at schools: Assessing the effect of the civil conflict using a pseudo-panel of schools," International Journal of Educational Development, Elsevier, vol. 49(C), pages 91-106.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Masci, Chiara & Ieva, Francesca & Agasisti, Tommaso & Paganoni, Anna Maria, 2016. "Does class matter more than school? Evidence from a multilevel statistical analysis on Italian junior secondary school students," Socio-Economic Planning Sciences, Elsevier, vol. 54(C), pages 47-57.
    2. Singh, Abhijeet, 2015. "Private school effects in urban and rural India: Panel estimates at primary and secondary school ages," Journal of Development Economics, Elsevier, vol. 113(C), pages 16-32.
    3. Cordero, José Manuel & Prior, Diego & Simancas Rodríguez, Rosa, 2013. "A comparison of public and private schools in Spain using robust nonparametric frontier methods," MPRA Paper 51375, University Library of Munich, Germany.
    4. Miguel Urquiola, 2015. "Progress and challenges in achieving an evidence-based education policy in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-30, December.
    5. Mohamad Fahmi, 2009. "The Effectiveness of Private Versus Public Schools in Indonesia: Comment," Working Papers in Economics and Development Studies (WoPEDS) 200913, Department of Economics, Padjadjaran University, revised Sep 2009.
    6. Bedi, Arjun S. & Garg, Ashish, 2000. "The effectiveness of private versus public schools: the case of Indonesia," Journal of Development Economics, Elsevier, vol. 61(2), pages 463-494, April.
    7. Gibbons, Stephen & Silva, Olmo, 2008. "Urban density and pupil attainment," Journal of Urban Economics, Elsevier, vol. 63(2), pages 631-650, March.
    8. Harold Alderman & Peter F. Orazem & Elizabeth M. Paterno, 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 304-326.
    9. Ludger Wößmann, 2006. "Bildungspolitische Lehren aus den internationalen Schülertests: Wettbewerb, Autonomie und externe Leistungsüberprüfung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(3), pages 417-444, August.
    10. Geeta Gandhi Kingdon, 2020. "The Private Schooling Phenomenon in India: A Review," Journal of Development Studies, Taylor & Francis Journals, vol. 56(10), pages 1795-1817, October.
    11. Hægeland, Torbjørn & Raaum, Oddbjørn & Salvanes, Kjell G., 2012. "Pennies from heaven? Using exogenous tax variation to identify effects of school resources on pupil achievement," Economics of Education Review, Elsevier, vol. 31(5), pages 601-614.
    12. Eva Crespo-Cebada & Francisco Pedraja-Chaparro & Daniel Santín, 2014. "Does school ownership matter? An unbiased efficiency comparison for regions of Spain," Journal of Productivity Analysis, Springer, vol. 41(1), pages 153-172, February.
    13. Patrick McEwan, 2001. "The Effectiveness of Public, Catholic, and Non-Religious Private Schools in Chile's Voucher System," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 103-128.
    14. Lant Pritchett & Martina Viarengo, 2015. "The State, Socialisation, and Private Schooling: When Will Governments Support Alternative Producers?," Journal of Development Studies, Taylor & Francis Journals, vol. 51(7), pages 784-807, July.
    15. Pal, Sarmistha, 2010. "Public infrastructure, location of private schools and primary school attainment in an emerging economy," Economics of Education Review, Elsevier, vol. 29(5), pages 783-794, October.
    16. Merzyn, Wolfram & Ursprung, Heinrich W., 2005. "Voter support for privatizing education: evidence on self-interest and ideology," European Journal of Political Economy, Elsevier, vol. 21(1), pages 33-58, March.
    17. Godstime Osekhebhen Eigbiremolen, 2020. "Estimating Private School Premium for Primary School Children in Ethiopia: Evidence from Individual-level Panel Data," Progress in Development Studies, , vol. 20(1), pages 26-44, January.
    18. Mancebón-Torrubia, María Jesús & Ximénez-de-Embún, Domingo Pérez, 2009. "Spanish publicly-subsidised private schools and equality of school choice," MPRA Paper 21164, University Library of Munich, Germany.
    19. Monique De Haan, 2017. "The Effect of Additional Funds for Low‐ability Pupils: A Non‐parametric Bounds Analysis," Economic Journal, Royal Economic Society, vol. 127(599), pages 177-198, February.
    20. James Tooley, 2004. "‘A Luta Continua’ (The Struggle Continues): Rejoinder To Watkins," Economic Affairs, Wiley Blackwell, vol. 24(4), pages 12-16, December.

    More about this item

    Keywords

    social objectives; private school premium; efficiency; school expenditure per student; private school heterogeneity; private motive; rural-urban dichotomy; Nepal;
    All these keywords.

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8270. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.