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Public Funding and Private Schooling across Countries

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  • Toma, Eugenia Froedge

Abstract

Production studies that have examined the relative performance of students in private and public schools typically find that the average student achievement in private schools exceeds that of the average student in public schools. The relatively small enrollment of students in private schools seriously limits policy predictions concerning the effects of vouchers and other policy reforms in the United States. The institutional arrangements for providing and funding schooling vary greatly across countries. This article examines these arrangements in five countries. Using a data set that measures achievement in mathematics, empirical results show that public funding and its subsequent effect of expanded enrollment in the private sector do not erase the superior performance of private schools relative to public ones. Government restrictions on private schools' decision-making powers can negate the superior performance of private schools. Copyright 1996 by the University of Chicago.

Suggested Citation

  • Toma, Eugenia Froedge, 1996. "Public Funding and Private Schooling across Countries," Journal of Law and Economics, University of Chicago Press, vol. 39(1), pages 121-148, April.
  • Handle: RePEc:ucp:jlawec:v:39:y:1996:i:1:p:121-48
    DOI: 10.1086/467345
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    References listed on IDEAS

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    Cited by:

    1. Ludger Woessmann, 2016. "The Importance of School Systems: Evidence from International Differences in Student Achievement," Journal of Economic Perspectives, American Economic Association, vol. 30(3), pages 3-32, Summer.
    2. David De La Croix & Matthias Doepke, 2009. "To Segregate or to Integrate: Education Politics and Democracy," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 597-628.
    3. Burger, Kaspar, 2016. "Intergenerational transmission of education in Europe: Do more comprehensive education systems reduce social gradients in student achievement?," MPRA Paper 95310, University Library of Munich, Germany, revised 2016.
    4. David Brasington, 2005. "School Choice and the Flight to Private Schools: To What Extent Are Public and Private Schools Substitutes?," Departmental Working Papers 2005-02, Department of Economics, Louisiana State University.
    5. Holger Sieg & Dennis Epple & Richard Romano, 2003. "Peer effects, financial aid and selection of students into colleges and universities: an empirical analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 501-525.
    6. José Manuel Cordero & Diego Prior & Rosa Simancas, 2016. "A comparison of public and private schools in Spain using robust nonparametric frontier methods," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 24(3), pages 659-680, September.
    7. Pablo González, 2002. "Lecciones de la investigación económica sobre el rol del sector privado en educación," Documentos de Trabajo 117, Centro de Economía Aplicada, Universidad de Chile.
    8. Kimura, Masako & Yasui, Daishin, 2009. "Public provision of private child goods," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 741-751, June.
    9. Ludger Wößmann, 2011. "Wettbewerb durch öffentliche Finanzierung von Schulen in freier Trägerschaft als wichtiger Ansatzpunkt zur Verbesserung des Schulsystems," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(01), pages 09-18, January.
    10. Martin R. West & Ludger Woessmann, 2010. "'Every Catholic Child in a Catholic School': Historical Resistance to State Schooling, Contemporary Private Competition and Student Achievement across Countries," Economic Journal, Royal Economic Society, vol. 120(546), pages 229-255, August.
    11. Cherchye, Laurens & De Witte, Kristof & Ooghe, Erwin & Nicaise, Ides, 2010. "Efficiency and equity in private and public education: A nonparametric comparison," European Journal of Operational Research, Elsevier, vol. 202(2), pages 563-573, April.
    12. David M. Brasington & Diane Hite, 2014. "School Choice: Supporters And Opponents," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 76-92, January.
    13. Rómulo A. Chumacero & Juan Gallegos Mardones & Ricardo D. Paredes, 2016. "Competition Pressures and Academic Performance in Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 43(2 Year 20), pages 217-232, December.
    14. Ludger Woessmann, 2007. "Fundamental Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries," CESifo Working Paper Series 1981, CESifo.
    15. Cordero, José Manuel & Prior, Diego & Simancas Rodríguez, Rosa, 2013. "A comparison of public and private schools in Spain using robust nonparametric frontier methods," MPRA Paper 51375, University Library of Munich, Germany.
    16. Edwin G. West & Zhiqi Chen, 2000. "Selective versus Universal Vouchers: Modelling Median Voter Preferences in Education," American Economic Review, American Economic Association, vol. 90(5), pages 1520-1534, December.
    17. Thomas J. Nechyba, 1996. "Public School Finance in a General Equilibrium Tiebout World: Equalization Programs, Peer Effects and Private School Vouchers," NBER Working Papers 5642, National Bureau of Economic Research, Inc.
    18. Ricardo Paredes & Rómulo Chumacero & Juan Gallegos, 2012. "Competition Pressures and Academic Performance in a Generalized Vouchers Context," EcoMod2012 4184, EcoMod.
    19. Douglas J. Lamdin, 2001. "Can P.S. 27 Turn A Profit? Provision Of Public Education By For‐Profit Suppliers," Contemporary Economic Policy, Western Economic Association International, vol. 19(3), pages 280-290, July.
    20. Dennis N. Epple & Richard Romano, 2003. "Neighborhood Schools, Choice, and the Distribution of Educational Benefits," NBER Chapters, in: The Economics of School Choice, pages 227-286, National Bureau of Economic Research, Inc.
    21. Pablo González, 2002. "Elementos de la regulación de la actividad privada en educación," Documentos de Trabajo 118, Centro de Economía Aplicada, Universidad de Chile.
    22. NONNEMAN, Walter, 2012. "School achievement and failure of immigrant children in Flanders," Working Papers 2012008, University of Antwerp, Faculty of Business and Economics.
    23. Filer, Randall K. & Münich, Daniel, 2013. "Responses of private and public schools to voucher funding," Economics of Education Review, Elsevier, vol. 34(C), pages 269-285.
    24. Ludger Woessmann, 2006. "Public-Private Partnership and Schooling Outcomes across Countries," CESifo Working Paper Series 1662, CESifo.

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