Evaluating Public Per-Student Subsidies to Low-Cost Private Schools : Regression-Discontinuity Evidence from Pakistan

This study estimates the causal effects of a public per-student subsidy program targeted at low-cost private schools in Pakistan on student enrollment and schooling inputs. Program entry is ultimately conditional on achieving a minimum stipulated s...

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Bibliographic Details
Main Authors: Barrera-Osorio, Felipe, Raju, Dhushyanth
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
LET
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110425102033
http://hdl.handle.net/10986/3402
Description
Summary:This study estimates the causal effects of a public per-student subsidy program targeted at low-cost private schools in Pakistan on student enrollment and schooling inputs. Program entry is ultimately conditional on achieving a minimum stipulated student pass rate (cutoff) in a standardized academic test. This mechanism for treatment assignment allows the application of regression-discontinuity (RD) methods to estimate program impacts at the cutoff. Data on two rounds of entry test takers (phase 3 and phase 4) are used. Modeling the entry process of phase-4 test takers as a sharp RD design, the authors find evidence of large positive impacts on the number of students, teachers, classrooms, and blackboards. Modeling the entry process of phase-3 test takers as a partially-fuzzy RD design given treatment crossovers, they do not find evidence of significant program impacts on outcomes of interest. The latter finding is likely due to weak identification arising from a small jump in the probability of treatment at the cutoff.