Decentralization policies are at the heart of education reform efforts in many countries internationally. Two important types of policies are those that: (a) remove barriers to private education; and (b) devolve authority and responsibility for schools from central level administrations to intermediate level organizations and ultimately to schools, relying more on local communities for financing, with an overall goal of improving effectiveness. While both types of policies are largely uninformed by empirical evidence regarding their impact on such education outcomes as student learning, in developing countries the evidence regarding the effects of local control is much weaker than that regarding private schools. This paper extends the literature on the impact of private education on achievement, while providing the first evidence on the impact of local control on achievement in a developing county. It analyzes data from 214 secondary schools in the Philippines to answer questions regarding: (a) the relative effectiveness of local, government and private secondary schools; and (b) the factors that account for observed differences.
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