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Inputs, Incentives, and Complementarities in Education: Experimental Evidence from Tanzania

Author

Listed:
  • Isaac Mbiti
  • Karthik Muralidharan
  • Mauricio Romero
  • Youdi Schipper
  • Constantine Manda
  • Rakesh Rajani

Abstract

We present results from a large-scale randomized experiment across 350 schools in Tanzania that studied the impact of providing schools with (a) unconditional grants, (b) teacher incentives based on student performance, and (c) both of the above. After two years, we find (a) no impact on student test scores from providing school grants, (b) some evidence of positive effects from teacher incentives, and (c) significant positive effects from providing both programs. Most importantly, we find strong evidence of complementarities between the two programs, with the effect of joint provision being significantly greater than the sum of the individual effects. Our results suggest that combining spending on school inputs (which is the default policy) with improved teacher incentives could substantially increase the cost-effectiveness of public spending on education.

Suggested Citation

  • Isaac Mbiti & Karthik Muralidharan & Mauricio Romero & Youdi Schipper & Constantine Manda & Rakesh Rajani, 2018. "Inputs, Incentives, and Complementarities in Education: Experimental Evidence from Tanzania," NBER Working Papers 24876, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24876
    Note: CH DEV ED LS PE
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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