Over at Let’s Talk Development, I give my take on an interesting new study using school report cards.
Better information to improve service delivery: New evidence
Countries around the world have experimented with “school report cards”: providing parents with information about the quality of their school so that they can demand higher quality service for their children. The results have been mixed. Andrabi, Das, and Khwaja bring a significant contribution to that literature in last month’s American Economic Review with their article, “Report Cards: The Impact of Providing School and Child Test Scores on Educational Markets.”
Here’s the abstract: “We study the impact of providing school report cards with 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 test scores is consistent with canonical models of asymmetric information. Information provision facilitates better comparisons across providers, and improves market efficiency and child welfare through higher test scores, higher enrollment, and lower fees.”
Read my take at the original post!