Does Private Schooling Improve International Test Scores? Evidence from a Natural Experiment
25 Pages Posted: 23 Jan 2017 Last revised: 2 Oct 2017
Date Written: October 1, 2017
I estimate the effect of private schooling on Program for International Student Assessment (PISA) scores of 62 countries across the globe from 2000 to 2012. I employ time and country-fixed effects regression models and also use the short-run demand for schooling within a country and year as an instrument for private share of schooling enrollment. I find evidence to suggest that increased private schooling leads to improved PISA scores around the world. Specifically, the model using control variables alongside country and year fixed effects finds that a one percentage point increase in the private share of schooling enrollment is associated with a 1.6-point increase in math scores and a 1.2-point increase in reading scores. However, only one of the two relationships remains statistically significant in the instrumental variables analysis.
Keywords: private school; school choice; PISA; international education
JEL Classification: I28
Suggested Citation: Suggested Citation