Does Private Competition Improve Public School Outcomes or Increase Inequality? The Case of Nepal

• In Event: Competition and Choice

Abstract

This paper estimates the impact of private school competition on public school examination outcomes in the case of a low-income country: Nepal. The analysis utilizes a unique 4-year school-level dataset, compiled from primary data collection and national records on education indicators and test performance. The study employs longitudinal analysis and instrumental variable estimation techniques. The findings suggest that while private competition has not had a discernible impact on public school outcomes, private school growth may have increased education inequality. Specifically, public schools in higher competition regions do not have statistically significantly different outcomes than public schools in lower competition regions. However, the gaps between private and public school examination outcomes are larger in localities that have undergone higher privatization.

Author

• Priyadarshani Joshi, University of Pennsylvania