Enhancing Excellence: Socially Motivated Private Schools of Nepal

37 Pages Posted: 19 Jan 2017

See all articles by Sarmistha Pal

Sarmistha Pal

University of Surrey; IZA Institute of Labor Economics

Bibhas Saha

Durham University Business School

Date Written: December 2, 2016

Abstract

Social motivation can promote efficiency of public service delivery though its role in providing schooling is little understood. We provide both theoretical and empirical insights as to why not-for-profit private schools could enhance excellence in schooling, using Nepal as a case study. Results suggest that socially motivated trust schools outperform all other types of schools irrespective of whether we consider standardised test scores, absolute or relative to school expenditure per student. Results are robust and highlight that trust school’s social objective, coupled with private financing, ownership and management that minimises its agency costs, is key to their value for money.

Keywords: Company and trust run schools, Social objectives, Profit motive, Standardised test scores, Test scores relative to school expenditure per student, Private school premium, Rural-urban dichotomy, Instrumental variable, Lagged value added model, Nepal.

JEL Classification: H44, I22

Suggested Citation

Pal, Sarmistha and Saha, Bibhas, Enhancing Excellence: Socially Motivated Private Schools of Nepal (December 2, 2016). Available at SSRN: https://ssrn.com/abstract=2879424 or http://dx.doi.org/10.2139/ssrn.2879424

Sarmistha Pal (Contact Author)

University of Surrey ( email )

Stag Hill
Guildford, England GU2 7XH
United Kingdom
01483 683995 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Bibhas Saha

Durham University Business School ( email )

Mill Hill Lane
Durham, Durham NR4 3LB
United Kingdom

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