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The quality of public education and private school enrollment: an assessment using Brazilian data

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  • Fernanda Estevan

    (PhD candidate, Department of Economics, CORE, Catholic University of Louvain)

Abstract

In this paper, we test the hypothesis that private school enrollment is the households' response to the low quality of public schools. In order to deal with the simultaneity issue, we explore variations in public school funding caused by the FUNDEF reform that occurred in Brazil in 1998. Using data from the Brazilian School Census, we show that a positive impact of the reform is associated with an immediate reduction in the share of private enrollment for the first grade of primary school at the municipality level. The same effect is not observed for the subsequent primary school years. This con¯rms the intuition that the parents may be reluctant to switch schools after the beginning of their child's schooling track. Our estimation results are robust to variations in the school participation and changes in the income distribution. Thus, the improvement in the quality of public schools originated by the FUNDEF reform has attracted households that would otherwise enroll in private institutions. The same mechanism seems to explain the increase in the net attendance rate during the same period.

Suggested Citation

  • Fernanda Estevan, 2009. "The quality of public education and private school enrollment: an assessment using Brazilian data," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-185, Boston University - Department of Economics.
    • Handle: RePEc:bos:iedwpr:dp-185
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    Cited by:

    1. Mike Gilraine & Hugh Macartney & Rob McMillan, 2018. "Education Reform in General Equilibrium: Evidence from California's Class Size Reduction," Working Papers tecipa-594, University of Toronto, Department of Economics.
    2. Michael Dinerstein & Troy D. Smith, 2021. "Quantifying the Supply Response of Private Schools to Public Policies," American Economic Review, American Economic Association, vol. 111(10), pages 3376-3417, October.
    3. Kosec, Katrina, 2014. "Relying on the private sector: The income distribution and public investments in the poor," Journal of Development Economics, Elsevier, vol. 107(C), pages 320-342.
    4. Michael Gilraine & Hugh Macartney & Robert McMillan, 2018. "Estimating the Direct and Indirect Effects of Major Education Reforms," NBER Working Papers 24191, National Bureau of Economic Research, Inc.
    5. Chauvin, Juan Pablo, 2024. "Local Education Spending and Migration: Evidence from a Large Redistribution Program," IDB Publications (Working Papers) 13497, Inter-American Development Bank.
    6. Ferry Prasetyia, 2019. "The role of local government policy on secondary school enrolment decision in Indonesia," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 139-172, June.
    7. Lazaretti, Lauana Rossetto & Aniceto França, Marco Túlio, 2020. "School competition and performance indicators: evidence from the creation of federal education institutions in Brazil," International Journal of Educational Development, Elsevier, vol. 77(C).
    8. Terra, Rafael & Mattos, Enlinson, 2017. "Accountability and yardstick competition in the public provision of education," Journal of Urban Economics, Elsevier, vol. 99(C), pages 15-30.
    9. Fernanda Estevan, 2015. "Public education expenditures and private school enrollment," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 561-584, May.
    10. 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.
    11. Pr Henri Atangana Ondoa, 2018. "The effects of heavily indebted poor countries initiative (HIPC) on millennium development goals (MDGs) for education," Review of Social Economy, Taylor & Francis Journals, vol. 76(4), pages 453-479, October.
    12. Christopher Neilson & Michael Dinerstein & Sebastián Otero, 2020. "The Equilibrium Effects of Public Provision in Education Markets: Evidence from a Public School Expansion Policy," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
    13. Kosec, Katrina, 2011. "Politics and preschool : the political economy of investment in pre-primary education," Policy Research Working Paper Series 5647, The World Bank.
    14. Fagernäs, Sonja & de la Fuente Stevens, Diego & Pelkonen, Panu & del Pozo Segura, Juan Manuel, 2025. "Public Gains, Private Strains: Public Investment and Private Schooling in Peru," IZA Discussion Papers 18189, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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