Upping the Ante

• Tác giả: Tahir Andrabi
• Ngôn ngữ: eng
• Ký hiệu phân loại: 795.41 Games in which skill is a major element
• Thông tin xuất bản: World Bank, Washington, DC, 2018
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 311225
• Chủ đề: 1. EDUCATION MARKETS; 2. FINANCIAL INNOVATION; 3. PRIVATE EDUCATION; 4. RETURN TO CAPITAL; 5. STUDENT ACHIEVEMENT

Tóm tắt

This paper tests for financial constraints as a market failure in education in a low-income country. In an experimental setup, unconditional cash grants are allocated to one private school or all private schools in a village. Enrollment increases in both treatments, accompanied by infrastructure investments. However, test scores and fees only increase in the setting of all private schools along with higher teacher wages. This differential impact follows from a canonical oligopoly model with capacity constraints and endogenous quality: greater financial saturation crowds-in quality investments. The findings of higher social surplus in the setting of all private schools, but greater private returns in the setting of one private school underscore the importance of leveraging market structure in designing educational subsidies.