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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
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    File URL: http://dx.doi.org/10.1086/467345
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    References listed on IDEAS

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    1. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    2. Murnane, Richard J & Newstead, Stuart & Olsen, Randall J, 1985. "Comparing Public and Private Schools: The Puzzling Role of Selectivity Bias," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 23-35, January.
    3. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-652, September.
    4. Mark C. Berger & Eugenia F. Toma, 1994. "Variation in state education policies and effects on student performance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(3), pages 477-491.
    5. Schwab, Robert M. & Oates, Wallace E., 1991. "Community composition and the provision of local public goods : A normative analysis," Journal of Public Economics, Elsevier, vol. 44(2), pages 217-237, March.
    6. Hanushek, E.A. & Lavy, V., 1993. "Dropping Out of school: Further Evidence on the Role of School Quality in Developing Countries," RCER Working Papers 345, University of Rochester - Center for Economic Research (RCER).
    7. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
    8. John S. Ambler, 1994. "Who benefits from educational choice? some evidence from Europe," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(3), pages 454-476.
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