Ideas to Action:

Independent research for global prosperity

Publications

 

September 7, 2017

Can a Public-Private Partnership Improve Liberia’s Schools?

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.

Mauricio Romero , Justin Sandefur and Wayne Aaron Sandholtz
June 21, 2017

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.

Nicholas Barton , Tessa Bold and Justin Sandefur