Public policy toward private education around the world

1. 1 Public policy toward private education around the world by Estelle James

2. 2 Interaction between public policy and private education Why do some countries have large private school sectors while others don�t? What is relationship between subsidies and private sector size? Are subsidies accompanied by controls and, if so, over what? Are private schools better or more efficient than public schools? How do they differ? I�ve studied these issues in many developing and industrialized countries-Holland, Australia, Japan, Sweden, UK, India, Kenya, Philippines, Indonesia �10 year study

3. 3 I found: Private school sectors in developing countries less subsidized than in industrialized countries, but often very large even without subsidies�satisfy �excess demand� since few public school places at sec. and higher levels In industrialized countries public school place exists for everyone. So private education exists to satisfy a �differentiated demand��academic qualify, pedagogical ideology, religious belief, linguistic affiliation. Private sectors grow large (>20% of enrollments) only if subsidized because free public alternative exists.

4. 4 How do public and private schools differ? Difficult to compare which are better academically because this requires value added study controlling for student input (motivation, peer group effect) But they differ in other ways that matter�religious, linguistic, pedagogical philosophy Lower production costs because lower teacher salaries�but this changes with large subsidies

5. 5 Types of subsidies Indirect�tax advantages (US) Partial--1 or 2 teachers, low rent buildings, texts and meals, small cash grant (Japan) Large (>75% total costs)�most salaries, some capital costs. Often on per-student basis�like vouchers. Have existed for many years in Netherlands (100 yrs, majority of students), Belgium, France, Denmark, UK vol. aided; also Chile

6. 6 Government regulations follow public money For indirect or partial subsidies�small regulations. Examples: health and safety standards, financial accounting, nonprofit status, school calendar, degree requirements For heavily subsidized schools, heavy regulations

7. 7 Common regulations for heavily subsidized private schools (1) Teachers--salaries, credentials, selection criteria, hiring and firing procedures, job security, civil service status Students�selection criteria (academic ability ruled out in UK vol. aided schools, religion ruled out and central criteria used in Germany but religion, caste, tribe OK in India) Low ceiling on fees so no price-rationing Decision-making structure (role for teachers, parents, students, government)

8. 8 Subsidies and controls (2) But final selection of teachers, students, teaching method left to schools�allows differentiation Regulations don�t begin immediately, but eventually grow (if government gives it can extract quid pro quo to win political support) Heavily subsidized private schools usually have same production costs as public schools because teacher salaries set at public school levels (Japan, Netheralnds, Australia, Kerala)

9. 9 Other bureaucratic changes Schools organize into larger associations (religious, pedagogical) to economize in dealing with government, but associations then exert control Easier for teachers to unionize as public subsidies increase so union exerts some control (Australia)

10. 10 Conclusion Publicly financed private schools do provide greater variety and choice to students, and many students use them. But they are not the same animal as privately financed private schools. They become more bureaucratic, less autonomous, a public-private hybrid.