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Does School Decentralization Raise Student Outcomes?: Theory And Evidence On The Roles Of School Autonomy And Community Participation

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  • Gunnarsson, Louise Victoria
  • Orazem, Peter F.
  • Sanchez, Mario
  • Verdisco, Aimee

Abstract

Using data on primary schools in 10 Latin-American countries, we estimate the impact of decentralized school decision-making on student performance. We develop a model that shows that local autonomous effort will be jointly determined with student academic performance. The model predicts that least squares estimates are biased toward finding a positive impact of school autonomy on student performance. Empirical tests confirm these predictions. Least squares estimates show a strong positive effect of decentralized decision-making on test scores, but these results are reversed after correcting for the endogeneity of school autonomy. However, results support the role of parental participation in the schools as a positive influence on student achievement.

Suggested Citation

  • Gunnarsson, Louise Victoria & Orazem, Peter F. & Sanchez, Mario & Verdisco, Aimee, 2004. "Does School Decentralization Raise Student Outcomes?: Theory And Evidence On The Roles Of School Autonomy And Community Participation," Working Papers 18220, Iowa State University, Department of Economics.
    • Handle: RePEc:ags:genres:18220
    DOI: 10.22004/ag.econ.18220
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    References listed on IDEAS

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    Cited by:

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    2. Nidhi Khattri & Cristina Ling & Shreyasi Jha, 2012. "The effects of school-based management in the Philippines: an initial assessment using administrative data," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 4(2), pages 277-295, June.
    3. Elizabeth M. King & Peter F. Orazem & Elizabeth M. Paterno, 2016. "Promotion with and without Learning: Effects on Student Enrollment and Dropout Behavior," The World Bank Economic Review, World Bank, vol. 30(3), pages 580-602.
    4. World Bank Group, 2015. "Governance and Finance Analysis of the Basic Education Sector in Nigeria," World Bank Publications - Reports 23683, The World Bank Group.
    5. Emiliana Vegas & Ilana Umansky, 2005. "Improving Teaching and Learning through Effective Incentives : What Can We Learn from Education Reforms in Latin America?," World Bank Publications - Reports 8694, The World Bank Group.
    6. Diaz-Serrano, Luis & Meix-Llop, Enric, 2012. "Do Fiscal and Political Decentralization Raise Students' Performance? A Cross-Country Analysis," IZA Discussion Papers 6722, Institute of Labor Economics (IZA).
    7. Nisha Arunatilake & Priyanka Jayawardena, 2008. "Will Formula-Based Funding and Decentralized Management Improve School Level Resources in Sri Lanka?," Working Papers PMMA 2008-12, PEP-PMMA.

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