Vouchers for basic education in developing countries : a principal-agent perspective
Voucher programs consist of three simultaneous reforms: (1) allowing parents to choose schools, (2) creating intense incentives for schools to increase enrollment, and (3) granting schools management autonomy to respond to demand. As a result, voucher advocates and critics tend to talk past each other. A principal-agent framework clarifies the argument for education vouchers. Central findings from the literature, including issues related to variance in the performance measure, risk aversion, the productivity of more effort, multiple tasks, and the value of monitoring are found relevant for an analysis of vouchers. An assessment of findings on voucher programs in industrial countries, as well as a review of voucher or quasi-voucher experiences in Bangladesh, Chile, Colombia, Cote d'Ivoire, and the Czech Republic support the usefulness of the analytic framework. The authors conclude that vouchers for basic education in developing countries can enhance outcomes when they are limited to modest numbers of poor students in urban settings, particularly in conjunction with existing private schools with surplus capacity. The success of more ambitious voucher programs depends on an institutional infrastructure challenging to industrial and developing countries alike.
|Date of creation:||31 Mar 2003|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J Millington & S Bradley, "undated".
"The Effect of Spatial Competition on Secondary School Exam Performance,"
cr04/98, Department of Economics, University of Lancaster.
- S Bradley & J Millington, 1998. "The effect of spatial competition on secondary school exam performance," Working Papers 539398, Lancaster University Management School, Economics Department.
- 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.
- King, Elizabeth M. & Orazem, Peter & Wohlgemuth, Darin, 1999. "Central Mandates and Local Incentives: The Colombia Education Voucher Program," Staff General Research Papers Archive 1708, Iowa State University, Department of Economics.
- World Bank, 2001. "Czech Republic : Enhancing the Prospects for Growth with Fiscal Stability," World Bank Publications, The World Bank, number 13864, October.
- Ritzen, Jozef M. M. & van Dommelen, Jan & De Vijlder, Frans J., 1997. "School finance and school choice in the Netherlands," Economics of Education Review, Elsevier, vol. 16(3), pages 329-335, June.
- repec:lan:wpaper:4774 is not listed on IDEAS
- World Bank, 2001. "Czech Republic : Enhancing the Prospects for Growth with Fiscal Stability," World Bank Other Operational Studies 15690, The World Bank.
- Michaelowa, Katharina, 2001. "Primary Education Quality in Francophone Sub-Saharan Africa: Determinants of Learning Achievement and Efficiency Considerations," World Development, Elsevier, vol. 29(10), pages 1699-1716, October.
- Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," American Economic Review, American Economic Association, vol. 92(5), pages 1535-1558, December.
- Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2001. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," NBER Working Papers 8343, National Bureau of Economic Research, Inc.
- Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for private schooling in colombia: Evidence from a randomized natural experiment," Natural Field Experiments 00203, The Field Experiments Website.
- Alejandra Mizala & Pilar Romaguera, 1998. "Desempeño escolar y elección de colegios: La experiencia chilena," Documentos de Trabajo 36, Centro de Economía Aplicada, Universidad de Chile.
- Cecilia Elena Rouse, 1998. "Private School Vouchers and Student Achievement: An Evaluation of the Milwaukee Parental Choice Program," The Quarterly Journal of Economics, Oxford University Press, vol. 113(2), pages 553-602.
- Holmstrom, Bengt & Milgrom, Paul, 1987. "Aggregation and Linearity in the Provision of Intertemporal Incentives," Econometrica, Econometric Society, vol. 55(2), pages 303-328, March.
- Bengt Holmstrom & Paul R. Milgrom, 1985. "Aggregation and Linearity in the Provision of Intertemporal Incentives," Cowles Foundation Discussion Papers 742, Cowles Foundation for Research in Economics, Yale University.
- Derek Neal, 2002. "How Vouchers Could Change the Market for Education," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 25-44, Fall.
- repec:lan:wpaper:4347 is not listed on IDEAS
- repec:lan:wpaper:4472 is not listed on IDEAS
- Chang-Tai Hsieh & Miguel Urquiola, 2003. "When Schools Compete, How Do They Compete? An Assessment of Chile's Nationwide School Voucher Program," NBER Working Papers 10008, National Bureau of Economic Research, Inc.
- Le Grand, Julian, 1991. "Quasi-markets and Social Policy," Economic Journal, Royal Economic Society, vol. 101(408), pages 1256-1267, September. Full references (including those not matched with items on IDEAS)