Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36269
Authors: 
Pal, Sarmistha
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers 4572
Abstract: 
The paper argues that access to public infrastructure plays a crucial role on the presence of private schools in a community, as it could not only minimise the cost of production, but also ensure a high return to private investment. Results using community, school and child/household-level PROBE survey data from five north Indian states provide some support to this central hypothesis: even after controlling for all other factors, access to village infrastructural facilities is associated with a higher likelihood of having a private school in the community. This is also corroborated by an analysis of household demand for private schools. The paper concludes by examining the effect of private school presence on year 5 pass rates: while all-school pass rates are significantly higher in villages with a private school, private school presence fails to have significant effect on local state school pass rates.
Subjects: 
School privatisation
school choice
school attainment
local public infrastructure
failing state schools
simultaneity bias
instrumental variable
JEL: 
I20
I30
O15
P36
Document Type: 
Working Paper

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