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

  • Asadullah, M. Niaz

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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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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  1. 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.
  2. Das, Jishnu & Pandey, Priyanka & Zajonc, Tristan, 2006. "Learning levels and gaps in Pakistan," Policy Research Working Paper Series 4067, The World Bank.
  3. Alderman, Harold & Orazem, Peter & Paterno, Elizabeth M., 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Staff General Research Papers 1970, Iowa State University, Department of Economics.
  4. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731.
  5. Mohammad Niaz Asadullah (SKOPE, Department of Economics), . "Returns to Education in Bangladesh," QEH Working Papers qehwps130, Queen Elizabeth House, University of Oxford.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. Gérard Lassibille & Jee-Peng Tan, 2003. "Student Learning in Public and Private Primary Schools in Madagascar," Post-Print halshs-00004972, HAL.
  13. 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).
  14. Behrman, J.R. & Ross, D. & Sabot, R. & Alderman, H., 1995. "The Returns to endogenous Human Capital in Pakistan's Rural Wage Labour Market," Center for Development Economics 141, Department of Economics, Williams College.
  15. 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.
  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.
  17. 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.
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