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American Economic Review Vol. 110 No. 2 2020

Outsourcing Education: Experimental Evidence from Liberia

Mauricio Romero1; Justin Sandefur2; Wayne Aaron Sandholtz3

1 Centro de Investigación Económica, ITAM (email: ) · 2 Center for Global Development (email: ) · 3 Department of Economics, UC San Diego (email: )

open access

Abstract

In 2016, the Liberian government delegated management of 93 randomly selected public schools to private providers. Providers received US$50 per pupil, on top of US$50 per pupil annual expenditure in control schools. After one academic year, students in outsourced schools scored 0.18 σ higher in English and mathematics. We do not find heterogeneity in learning gains or enrollment by student characteristics, but there is significant heterogeneity across providers. While outsourcing appears to be a cost-effective way to use new resources to improve test scores, some providers engaged in unforeseen and potentially harmful behavior, complicating any assessment of welfare gains.

DOI
10.1257/aer.20181478
Volume
110
Issue
2
Pages
364-400
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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