After one year, public schools managed by private operators raised student learning by 60 percent compared to standard public schools. But costs were high, performance varied across operators, and contracts authorized the largest operator to push excess pupils and under-performing teachers into other government schools.
After one year, public schools managed by private contractors in Liberia raised student learning by 60 percent, compared to standard public schools.
Measuring Rents from Public Employment: Regression Discontinuity Evidence from Kenya - Working Paper 457
Public employees in many developing economies earn much higher wages than similar private-sector workers. These wage premia may reflect an efficient return to effort or unobserved skills, or an inefficient rent causing labor misallocation. To distinguish these explanations, we exploit the Kenyan government’s algorithm for hiring eighteen-thousand new teachers in 2010 in a regression discontinuity design. Fuzzy regression discontinuity estimates yield a civil-service wage premium of over 100 percent (not attributable to observed or unobserved skills), but no effect on motivation, suggesting rent-sharing as the most plausible explanation for the wage premium.
Using the Demographic and Health Survey (DHS) data on the ability of women at various levels of schooling attainment to read a simple sentence, we show that reaching universal completion of grade six among girls would not bring the world anywhere close to the goal of universal female literacy.