IDEAS home Printed from https://ideas.repec.org/p/avg/wpaper/en7763.html
   My bibliography  Save this paper

Explaining the Development of Private Education: the Effect of Public Expenditure on Education

Author

Listed:
  • Arthuer Bauer et Rohen d'AIGLEPIERRE

Abstract

There is considerable cross-country variability in the distribution of pupils between public and private education. Whereas in some countries most children attend private schools, other countries have barely developed an educational offer that provides an alternative to public education. Drawing on available macroeconomic data, we test how public spending on education impacts the distribution of pupils enrolled in private institutions. Using disaggregated data on primary and secondary education in a large number of countries and over a long period, we analyse the differences in the public-private mix of educational systems. Cross-sectional and dynamic panel analyses show that the share of enrolments in private education at primary and secondary levels is strongly impacted by the level of public expenditure on education.

Suggested Citation

  • Arthuer Bauer et Rohen d'AIGLEPIERRE, 2017. "Explaining the Development of Private Education: the Effect of Public Expenditure on Education," Working Paper 237926bf-0d6f-4396-b47e-9, Agence française de développement.
    • Handle: RePEc:avg:wpaper:en7763
    as

    Download full text from publisher

    File URL: https://www.afd.fr/sites/afd/files/imported-files/39-papiers-recherche.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Downes, Thomas A & Greenstein, Shane M, 2002. "Entry into the Schooling Market: How Is the Behaviour of Private Suppliers Influenced by Public Sector Decisions?," Bulletin of Economic Research, Wiley Blackwell, vol. 54(4), pages 341-371, October.
    2. Harry Anthony Patrinos & Shobhana Sosale, 2007. "Mobilizing the Private Sector for Public Education : A View from the Trenches," World Bank Publications - Books, The World Bank Group, number 6756.
    3. Caroline Minter Hoxby, 2003. "Introduction to "The Economics of School Choice"," NBER Chapters, in: The Economics of School Choice, pages 1-22, National Bureau of Economic Research, Inc.
    4. Schneider, Kerstin & Schuchart, Claudia & Weishaupt, Horst & Riedel, Andrea, 2012. "The effect of free primary school choice on ethnic groups — Evidence from a policy reform," European Journal of Political Economy, Elsevier, vol. 28(4), pages 430-444.
    5. David De La Croix & Matthias Doepke, 2009. "To Segregate or to Integrate: Education Politics and Democracy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(2), pages 597-628.
    6. Lankford, Hamilton & Wyckoff, James, 1992. "Primary and secondary school choice among public and religious alternatives," Economics of Education Review, Elsevier, vol. 11(4), pages 317-337, December.
    7. Michele Boldrin & Ana Montes, 2005. "The Intergenerational State Education and Pensions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 651-664.
    8. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," Post-Print halshs-00754788, HAL.
    9. Caroline M. Hoxby, 2003. "The Economics of School Choice," NBER Books, National Bureau of Economic Research, Inc, number hox03-1.
    10. Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," American Economic Review, American Economic Association, vol. 92(5), pages 1535-1558, December.
    11. 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.
    12. Goldhaber, Dan, 1999. "An Endogenous Model of Public School Expenditures and Private School Enrollment," Journal of Urban Economics, Elsevier, vol. 46(1), pages 106-128, July.
    13. Dennis Epple & Richard Romano, 2008. "Educational Vouchers And Cream Skimming," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1395-1435, November.
    14. Long, James E & Toma, Eugenia F, 1988. "The Determinants of Private School Attendance, 1970-1980," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 351-357, May.
    15. Estache, Antonio & Gonzalez, Marianela & Trujillo,Lourdes, 2007. "Government expenditures on education, health, and infrastructure : a naive look at levels, outcomes, and efficiency," Policy Research Working Paper Series 4219, The World Bank.
    16. Cohen-Zada, Danny, 2006. "Preserving religious identity through education: Economic analysis and evidence from the US," Journal of Urban Economics, Elsevier, vol. 60(3), pages 372-398, November.
    17. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237.
    18. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
    19. Lant Pritchett & Martina Viarengo, 2013. "The State, Socialization, and Private Schooling: When Will Governments Support Alternative Producers?," CID Working Papers 272, Center for International Development at Harvard University.
    20. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
    21. Thomas A. Downes & Shane M. Greenstein, 1996. "Understanding the Supply Decisions of Nonprofits: Modelling the Location of Private Schools," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 365-390, Summer.
    22. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969.
    23. Buddin, Richard J. & Cordes, Joseph J. & Kirby, Sheila Nataraj, 1998. "School Choice in California: Who Chooses Private Schools?," Journal of Urban Economics, Elsevier, vol. 44(1), pages 110-134, July.
    24. Downes, Thomas A. & Schoeman, David, 1998. "School Finance Reform and Private School Enrollment: Evidence from California," Journal of Urban Economics, Elsevier, vol. 43(3), pages 418-443, May.
    25. Cohen-Zada, Danny & Justman, Moshe, 2005. "The religious factor in private education," Journal of Urban Economics, Elsevier, vol. 57(3), pages 391-418, May.
    26. James, Estelle, 1987. "The public/private division of responsibility for education: An international comparison," Economics of Education Review, Elsevier, vol. 6(1), pages 1-14, February.
    27. Nishimura, Mikiko & Yamano, Takashi, 2013. "Emerging Private Education in Africa: Determinants of School Choice in Rural Kenya," World Development, Elsevier, vol. 43(C), pages 266-275.
    28. 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.
    29. Lankford R. H. & Lee E. S. & Wyckoff J. H., 1995. "An Analysis of Elementary and Secondary School Choice," Journal of Urban Economics, Elsevier, vol. 38(2), pages 236-251, September.
    30. Lott, John R, Jr, 1990. "An Explanation for Public Provision of Schooling: The Importance of Indoctrination," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 199-231, April.
    Full references (including those not matched with items on IDEAS)

    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. Susan Dynarski & Jonathan Gruber & Danielle Li, 2009. "Cheaper By the Dozen: Using Sibling Discounts at Catholic Schools to Estimate the Price Elasticity of Private School Attendance," NBER Working Papers 15461, National Bureau of Economic Research, Inc.
    2. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
    3. Sofia N. Andreou, 2012. "Analysis of Household Expenditure on Education in Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 6(2), pages 17-38, December.
    4. Cohen-Zada, Danny & Sander, William, 2008. "Religion, religiosity and private school choice: Implications for estimating the effectiveness of private schools," Journal of Urban Economics, Elsevier, vol. 64(1), pages 85-100, July.
    5. Figlio, David N. & Stone, Joe A., 2001. "Can Public Policy Affect Private School Cream Skimming?," Journal of Urban Economics, Elsevier, vol. 49(2), pages 240-266, March.
    6. Cohen-Zada, Danny, 2006. "Preserving religious identity through education: Economic analysis and evidence from the US," Journal of Urban Economics, Elsevier, vol. 60(3), pages 372-398, November.
    7. Amedeo Piolatto, 2011. "Financing public education: a political economy model with altruistic agents and retirement concerns," Working Papers. Serie AD 2011-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    8. Bearse, Peter & Cardak, Buly A. & Glomm, Gerhard & Ravikumar, B., 2013. "Why do education vouchers fail at the ballot box?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 26-37.
    9. Peter Bearse & Buly A. Cardak & Gerhard Glomm & B. Ravikumar, 2009. "Why do Education Vouchers Fail?," CAEPR Working Papers 2009-014, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    10. Daniel Montolio (University of Barcelona (UB) and Barcelona Institute of Economics (IEB)) & Amedeo Piolatto (University of Barcelona (UB) and Barcelona Institute of Economics (IEB)), 2011. "Financing public education when altruistic agents have retirement concerns," Working Papers in Economics 268, Universitat de Barcelona. Espai de Recerca en Economia.
    11. Astghik Mavisakalyan, 2011. "Immigration, Public Education Spending, and Private Schooling," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 397-423, October.
    12. Danny Cohen-Zada & William Sander, 2006. "Private School Choice: The Effects Of Religion And Religiosity," Working Papers 0601, Ben-Gurion University of the Negev, Department of Economics.
    13. Chang-Tai Hsieh & Miguel Urquiola, 2002. "When Schools Compete, How Do They Compete? An Assessment of Chile's Nationwide School Voucher Program," Working Papers 123, Princeton University, Department of Economics, Center for Economic Policy Studies..
    14. Michela Ponzo, 2011. "The effects of school competition on the achievement of Italian students," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 32(1), pages 53-61, January.
    15. Cohen-Zada, Danny & Justman, Moshe, 2005. "The religious factor in private education," Journal of Urban Economics, Elsevier, vol. 57(3), pages 391-418, May.
    16. Lorraine Dearden & Chris Ryan & Luke Sibieta, 2010. "What determines private school choice? a comparison between the UK and Australia," IFS Working Papers W10/22, Institute for Fiscal Studies.
    17. Hungerman, Daniel M. & Rinz, Kevin, 2016. "Where does voucher funding go? How large-scale subsidy programs affect private-school revenue, enrollment, and prices," Journal of Public Economics, Elsevier, vol. 136(C), pages 62-85.
    18. Argentino Pessoa, 2008. "Educational Reform in Developing Countries: Private Involvement and Partnerships," FEP Working Papers 284, Universidade do Porto, Faculdade de Economia do Porto.
    19. Daniel Montolio & Amedeo Piolatto & Luca Salvadori, 2022. "Financing public education when agents have retirement concerns," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1559-1580, October.
    20. Danny Cohen Zada, 2007. "An Alternative Instrument for Private School Competition," Working Papers 0705, Ben-Gurion University of the Negev, Department of Economics.

    More about this item

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

    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:avg:wpaper:en7763. 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: AFD (email available below). General contact details of provider: https://edirc.repec.org/data/afdgvfr.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.