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Returns to private and public education in Bangladesh and Pakistan: A comparative analysis

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  • Asadullah, M. Niaz

Abstract

This paper documents wage differentials between private and public school graduates in Bangladesh and Pakistan. While evidence in support of a wage advantage of private school graduates in Bangladesh is lacking, Pakistani private school graduates are found to earn more than their public school counterparts. This finding has important implications for the current debate over the effectiveness of private schools in South Asia. To the extent the wage premium arises owing to education in private schools, our result suggests relative superiority of private schools in Pakistan and are consistent with extant studies that have assessed private school quality using test scores of students. The difference in the performance of private schools in the two countries, however, remains a puzzle. This difference, we conjecture, may be partly explained by the between-country differences in public policy towards private schools and, therefore, the regulatory regime facing these schools.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 20 (2009)
Issue (Month): 1 (January)
Pages: 77-86

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Handle: RePEc:eee:asieco:v:20:y:2009:i:1:p:77-86

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Web page: http://www.elsevier.com/locate/asieco

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Keywords: Private schools Wage returns to education Bangladesh Pakistan;

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References

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  1. 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.
  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. Mohammad Niaz Asadullah (SKOPE, Department of Economics), . "Returns to Education in Bangladesh," QEH Working Papers qehwps130, Queen Elizabeth House, University of Oxford.
  4. 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.
  5. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, October.
  6. 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).
  7. Kim, Jooseop & Alderman, Harold & Orazem, Peter, 1999. "Can Private School Subsidies Increase Schooling for the Poor? The Quetta Urban Fellowship Program," Staff General Research Papers 1709, Iowa State University, Department of Economics.
  8. Das, Jishnu & Pandey, Priyanka & Zajonc, Tristan, 2006. "Learning levels and gaps in Pakistan," Policy Research Working Paper Series 4067, The World Bank.
  9. Mohammad Niaz Asadullah (Reading University), Nazmul Chaudhury (World Bank) and Amit Dar (World Bank), . "Student Achievement Conditioned Upon School Selection: Religious and Secular Secondary School Quality in Bangladesh," QEH Working Papers qehwps140, Queen Elizabeth House, University of Oxford.
  10. M. Niaz Asadullah, 2005. "The effect of class size on student achievement: evidence from Bangladesh," Applied Economics Letters, Taylor & Francis Journals, vol. 12(4), pages 217-221.
  11. Kim, Jooseop & Alderman, Harold & Orazem, Peter F, 1999. "Can Private School Subsidies Increase Enrollment for the Poor? The Quetta Urban Fellowship Program," World Bank Economic Review, World Bank Group, vol. 13(3), pages 443-65, September.
  12. Lassibille, Gerard & Tan, Jee-Peng, 2003. "Student Learning in Public and Private Primary Schools in Madagascar," Economic Development and Cultural Change, University of Chicago Press, vol. 51(3), pages 699-717, April.
  13. Shahrukh Rafi Khan & David Kiefer, 2007. "Educational Production Functions for Rural Pakistan: A Comparative Institutional Analysis," Education Economics, Taylor & Francis Journals, vol. 15(3), pages 327-342.
  14. Paul Glewwe, 2002. "Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 436-482, June.
  15. Alderman, Harold, et al, 1996. "The Returns to Endogenous Human Capital in Pakistan's Rural Wage Labour Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 29-55, February.
  16. Monazza Aslam, 2006. "The Quality of School Provision in Pakistan: Are Girls Worse Off?," Economics Series Working Papers GPRG-WPS-066, University of Oxford, Department of Economics.
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Citations

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Cited by:
  1. Yamamura, Eiji, 2010. "Public spending on education: Its impact on students skipping classes and completing school," MPRA Paper 23657, University Library of Munich, Germany.
  2. Chiara Binelli & Marta Rubio Codina, 2012. "The returns to private education: evidence from Mexico," IFS Working Papers W12/08, Institute for Fiscal Studies.
  3. Masooma Habib, 2013. "Education in Pakistan’s Punjab: Outcomes and Interventions," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 18(Special E), pages 21-48, September.
  4. Asadullah, Niaz & Chakrabarti, Rupa & Chaudhury, Nazmul, 2012. "What Determines Religious School Choice? Theory and Evidence from Rural Bangladesh," IZA Discussion Papers 6883, Institute for the Study of Labor (IZA).
  5. Mohammad Niaz Asadullah (Reading University) and Nazmul Chaudhury (World Bank), . "Religious Schools, Social Values and Economic Attitudes: Evidence from Bangladesh," QEH Working Papers qehwps139, Queen Elizabeth House, University of Oxford.

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