Report Cards: The Impact of Providing School and Child Test Scores on Educational Markets

reportcards_june2014.pdf2.14 MB

Abstract:

We study the impact of providing school and child test scores on subsequent test scores, prices, and enrollment in markets with multiple public and private providers. A randomly selected half of our sample villages (markets) received report cards. This increased test scores by 0.11 standard deviations, decreased private school fees by 17 percent and increased primary enrollment by 4.5 percent. Heterogeneity in the treatment impact by initial school quality is consistent with canonical models of asymmetric information. Information provision facilitates better comparisons across providers, improves market efficiency and raises child welfare through higher test scores, higher enrollment and lower fees.

Notes:

Revision requested at American Economic Review. June 2014.

HKS Working Paper: RWP14-052
JEL Class: O12, I25, L15, L22, D22, D82
Keywords: Educational Markets, Information Provision, Private Schools, Market-level Experiments
Last updated on 12/09/2015