Heterogeneity in School Value Added and the Private Premium

By:

Andrabi, Tahir

Contributor(s):

Material type:

Continuing resourcePublication details: American Economic Review; 2025Description: 147-182ISSN:

0002-8282

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Summary: We estimate and validate test score-based measures of school quality (school value added, or SVA) in Pakistan. We document substantial variation in SVA within villages and within the public and private sectors, leading to a wide range of possible estimates of the private premium. We also show that parents value SVA. Heterogeneity in parental demand for quality helps explain both the evolution of the market over time and cross-market variation in school quality. The supply side responds to parental demand for quality in the private sector, but there is no evidence it does so in the public sector.

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Holdings
Item type	Current library	Vol info	Status	Barcode
Article Index	Dr VKRV Rao Library	Vol. 115, No. 1	Not for loan	AI1343

We estimate and validate test score-based measures of school quality (school value added, or SVA) in Pakistan. We document substantial variation in SVA within villages and within the public and private sectors, leading to a wide range of possible estimates of the private premium. We also show that parents value SVA. Heterogeneity in parental demand for quality helps explain both the evolution of the market over time and cross-market variation in school quality. The supply side responds to parental demand for quality in the private sector, but there is no evidence it does so in the public sector.

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