Abstract
The paper presents evidence on differences between public and private schools in Colombia and Tanzania on a number of indicators like cognitive achievement, unit cost and labor market outcomes. The findings are mixed, in the sense that in both countries, statistically controlling for student ability and socioeconomic background, private school students outperform their public school counterparts on academic achievement, whereas the reverse is true regarding achievement on specialized subject-matter. One possible explanation of this finding is that parental pressure (social demand) on private schools makes them tacitly emphasize academic subjects which are viewed by their customers as leading to a higher level of opportunities after graduation.
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