Schools, School Quality and Academic Achievement: Evidence from the Philippines

A broad literature seeks to assess the importance of schools, proxies for school quality, and family background on children's achievement growth using the education production function. Using rich data from the Philippines, we introduce and estimate a model that imposes little structure on the relationship between intake achievement and follow-up achievement and evaluate school performance based on this estimated relationship. Our methods nest typical value added specifications that use test score gains as the outcome variable and models assuming linearity in the relationship between intake and follow-up scores. We find evidence against the use of value-added models for our data and show that such models give very different assessments of school performance in the Philippines. Using a variety of tests we find that schools matter in the production of student achievement, though variation in performance across schools only explain about 6 percent of the total (conditional) variation in follow-up achievement. Schools providing basic facilities - in particular schools providing electricity - are found to perform much better in the production of achievement growth.