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Does School Decentralization Raise Student Outcomes?: Theory And Evidence On The Roles Of School Autonomy And Community Participation

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  • Gunnarsson, Louise Victoria
  • Orazem, Peter F.
  • Sanchez, Mario
  • Verdisco, Aimee

Abstract

Using data on primary schools in 10 Latin-American countries, we estimate the impact of decentralized school decision-making on student performance. We develop a model that shows that local autonomous effort will be jointly determined with student academic performance. The model predicts that least squares estimates are biased toward finding a positive impact of school autonomy on student performance. Empirical tests confirm these predictions. Least squares estimates show a strong positive effect of decentralized decision-making on test scores, but these results are reversed after correcting for the endogeneity of school autonomy. However, results support the role of parental participation in the schools as a positive influence on student achievement.

Suggested Citation

  • Gunnarsson, Louise Victoria & Orazem, Peter F. & Sanchez, Mario & Verdisco, Aimee, 2004. "Does School Decentralization Raise Student Outcomes?: Theory And Evidence On The Roles Of School Autonomy And Community Participation," Working Papers 18220, Iowa State University, Department of Economics.
  • Handle: RePEc:ags:genres:18220
    DOI: 10.22004/ag.econ.18220
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    File URL: https://ageconsearch.umn.edu/record/18220/files/wp040005.pdf
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    References listed on IDEAS

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    3. King, Elizabeth M & Orazem, Peter F & Wohlgemuth, Darin, 1999. "Central Mandates and Local Incentives: The Colombia Education Voucher Program," World Bank Economic Review, World Bank Group, vol. 13(3), pages 467-491, September.
    4. Allison M. Borden, 2002. "Directores de Escuela en América Latina y el Caribe: ¿Líderes del Cambio ó Sujetos a Cambio?," IDB Publications (Working Papers) 9038, Inter-American Development Bank.
    5. 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.
    6. Kremer, Michael R, 1995. "Research on Schooling: What We Know and What We Don't: A Comment," World Bank Research Observer, World Bank Group, vol. 10(2), pages 247-254, August.
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    Cited by:

    1. Qin, Lixia & Bowen, Daniel H., 2019. "The distributions of teacher qualification: A cross-national study," International Journal of Educational Development, Elsevier, vol. 70(C), pages 1-1.
    2. Nidhi Khattri & Cristina Ling & Shreyasi Jha, 2012. "The effects of school-based management in the Philippines: an initial assessment using administrative data," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 4(2), pages 277-295, June.
    3. Elizabeth M. King & Peter F. Orazem & Elizabeth M. Paterno, 2016. "Promotion with and without Learning: Effects on Student Enrollment and Dropout Behavior," World Bank Economic Review, World Bank Group, vol. 30(3), pages 580-602.
    4. Nisha Arunatilake & Priyanka Jayawardena, 2008. "Will Formula-Based Funding and Decentralized Management Improve School Level Resources in Sri Lanka?," Working Papers PMMA 2008-12, PEP-PMMA.

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