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Outsourcing Education: Experimental Evidence from Liberia

Author

Listed:
  • Mauricio Romero
  • Justin Sandefur
  • Wayne Aaron Sandholtz

Abstract

In 2016, the Liberian government delegated management of 93 randomly selected public schools to private providers. Providers received US$50 per pupil, on top of US$50 per pupil annual expenditure in control schools. After one academic year, students in outsourced schools scored 0.18σ higher in English and mathematics. We do not find heterogeneity in learning gains or enrollment by student characteristics, but there is significant heterogeneity across providers. While outsourcing appears to be a cost-effective way to use new resources to improve test scores, some providers engaged in unforeseen and potentially harmful behavior, complicating any assessment of welfare gains.

Suggested Citation

  • Mauricio Romero & Justin Sandefur & Wayne Aaron Sandholtz, 2020. "Outsourcing Education: Experimental Evidence from Liberia," American Economic Review, American Economic Association, vol. 110(2), pages 364-400, February.
    • Handle: RePEc:aea:aecrev:v:110:y:2020:i:2:p:364-400
    DOI: 10.1257/aer.20181478
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    Citations

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    Cited by:

    1. Deutschmann, Joshua W. & Gars, Jared & Houde, Jean-François & Lipscomb, Molly & Schechter, Laura, 2023. "Privatization of public goods: Evidence from the sanitation sector in Senegal," Journal of Development Economics, Elsevier, vol. 160(C).
    2. Di Liberto, Adriana & Giua, Ludovica & Schivardi, Fabiano & Sideri, Marco & Sulis, Giovanni, 2023. "Managerial Practices and Student Performance: Evidence from Changes in School Principals," IZA Discussion Papers 16203, Institute of Labor Economics (IZA).
    3. Aguero, Jorge M. & Favara, Marta & Porter, Catherine & Sanchez, Alan, 2021. "Do More School Resources Increase Learning Outcomes? Evidence from an Extended School-Day Reform," IZA Discussion Papers 14240, Institute of Labor Economics (IZA).
    4. Fazzio, Ila & Eble, Alex & Lumsdaine, Robin L. & Boone, Peter & Bouy, Baboucarr & Hsieh, Pei-Tseng Jenny & Jayanty, Chitra & Johnson, Simon & Silva, Ana Filipa, 2021. "Large learning gains in pockets of extreme poverty: Experimental evidence from Guinea Bissau," Journal of Public Economics, Elsevier, vol. 199(C).
    5. Emerick, Kyle & De Janvry, Alain & Sadoulet, Elisabeth & Dar, Manzoor & Wiseman, Eleanor, 2020. "Private Input Suppliers as Information Agents for Technology Adoption in Agriculture," CEPR Discussion Papers 15584, C.E.P.R. Discussion Papers.
    6. Judyta Kabus & Michał Dziadkiewicz & Ireneusz Miciuła & Marcin Mastalerz, 2022. "Using Outsourcing Services in Manufacturing Companies," Resources, MDPI, vol. 11(3), pages 1-20, March.
    7. Eble, Alex & Frost, Chris & Camara, Alpha & Bouy, Baboucarr & Bah, Momodou & Sivaraman, Maitri & Hsieh, Pei-Tseng Jenny & Jayanty, Chitra & Brady, Tony & Gawron, Piotr & Vansteelandt, Stijn & Boone, P, 2021. "How much can we remedy very low learning levels in rural parts of low-income countries? Impact and generalizability of a multi-pronged para-teacher intervention from a cluster-randomized trial in the ," Journal of Development Economics, Elsevier, vol. 148(C).
    8. Christopher Neilson & Michael Dinerstein & Sebastián Otero, 2020. "The Equilibrium Effects of Public Provision in Education Markets: Evidence from a Public School Expansion Policy," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
    9. Crawfurd, Lee & Evans, David K. & Hares, Susannah & Sandefur, Justin, 2023. "Live tutoring calls did not improve learning during the COVID-19 pandemic in Sierra Leone," Journal of Development Economics, Elsevier, vol. 164(C).

    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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