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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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/asieco

Keywords: Private schools Wage returns to education Bangladesh Pakistan;

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  1. 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.
  2. 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.
  3. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521608275, November.
  4. Newhouse, David & Beegle, Kathleen, 2005. "The effect of school type on academic achievement : evidence from Indonesia," Policy Research Working Paper Series 3604, The World Bank.
  5. Mohammad Niaz Asadullah, 2006. "Returns to Education in Bangladesh," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 453-468.
  6. 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 Archive 1970, Iowa State University, Department of Economics.
  7. Gérard Lassibille & Jee-Peng Tan, 2001. "Are private schools more efficient than public schools ? Evidence from Tanzania," Post-Print halshs-01266314, HAL.
  8. 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.
  9. Gérard Lassibille & Jee-Peng Tan, 2003. "Student Learning in Public and Private Primary Schools in Madagascar," Post-Print halshs-00004972, HAL.
  10. 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.
  11. 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.
  12. 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 Archive 1709, Iowa State University, Department of Economics.
  13. Das, Jishnu & Pandey, Priyanka & Zajonc, Tristan, 2006. "Learning levels and gaps in Pakistan," Policy Research Working Paper Series 4067, The World Bank.
  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. 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.
  16. 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.
  17. 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.
  18. 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.
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Cited by:

  1. Asadullah, Niaz, 2014. "The Effect of Islamic Secondary School Attendance on Academic Achievement," IZA Discussion Papers 8233, Institute for the Study of Labor (IZA).
  2. Delavande, Adeline & Zafar, Basit, 2014. "University choice: the role of expected earnings, non-pecuniary outcomes, and financial constraints," Staff Reports 683, Federal Reserve Bank of New York.
  3. Chiara Binelli & Marta Rubio Codina, 2012. "The returns to private education: evidence from Mexico," IFS Working Papers W12/08, Institute for Fiscal Studies.
  4. Lamichhane, Kamal & Watanabe, Takayuki, 2015. "The Effect of Disability and Gender on Returns to the Investment in Education: A Case from Metro Manilla of the Philippines," Working Papers 103, JICA Research Institute.
  5. Asadullah, M Niaz & Chaudhury, Nazmul, 2016. "To madrasahs or not to madrasahs: The question and correlates of enrolment in Islamic schools in Bangladesh," International Journal of Educational Development, Elsevier, vol. 49(C), pages 55-69.
  6. 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.
  7. Yamamura, Eiji, 2010. "Public spending on education: Its impact on students skipping classes and completing school," MPRA Paper 23657, University Library of Munich, Germany.
  8. 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.
  9. Quynh T. Nguyen & Dhushyanth Raju, 2015. "Private School Participation in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(1), pages 1-46, Jan-June.
  10. M. Niaz Asadullah & Rupa Chakrabarti & Nazmul Chaudhury, 2015. "What Determines Religious School Choice? Theory And Evidence From Rural Bangladesh," Bulletin of Economic Research, Wiley Blackwell, vol. 67(2), pages 186-207, 04.
  11. Kolstad, Ivar & Wiig, Arne & Moazzem, Khondaker Golam, 2014. "Returns to education among entrepreneurs in Bangladesh," Journal of Asian Economics, Elsevier, vol. 34(C), pages 54-65.

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