Can Free Provision Reduce Demand for Public Services?

Tessa Bold · Mwangi S. Kimenyi · Mwabu Germano · Justin Sandefur

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School Choice and Performance Poverty, Education, and Child Welfare Politics, Economics, and Education Policy

Abstract

In 2003 Kenya abolished user fees in all government primary schools. Analysis of household survey data shows this policy contributed to a shift in demand away from free schools, where net enrollment stagnated after 2003, toward fee-charging private schools, where both enrollment and fee levels grew rapidly after 2003. These shifts had mixed distributional consequences. Enrollment by poorer households increased, but segregation between socio-economic groups also increased. The shift in demand toward private schooling was driven by more affluent households who (i) paid higher ex ante fees and thus experienced a larger reduction in school funding, and (ii) appear to have exited public schools partially in reaction to increased enrollment by poorer children.

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References

1997Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach 1999Do Better Schools Matter? Parental Valuation of Elementary Education 2004School subsidies for the poor: evaluating the Mexican Progresa poverty program 2004Ethnic diversity, social sanctions, and public goods in Kenya 2004Local Capture: Evidence from a Central Government Transfer Program in Uganda 2005Fighting Corruption to Improve Schooling: Evidence from a Newspaper Campaign in Uganda 2003Does cost of schooling affect enrollment by the poor? Universal primary education in Uganda 2002What Do Parents Want From Schools? Evidence From the Internet

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