Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/193364 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12070
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Inequalities in the opportunity to obtain a good education in low-income countries are widely understood to be related to household resources and schooling quality. Yet, to date, most researchers have investigated the contributions of these two factors separately. This paper considers them jointly, paying special attention to their covariation, which indicates whether schools exacerbate or compensate for existing household-based inequalities. The paper develops a new variance decomposition framework and applies it to data on more than one million children in three low-income East African countries. The empirical results show that although household factors account for a significant share of total test score variation, variation in school quality and positive sorting between households and schools are, together, no less important. The analysis also finds evidence of substantial geographical heterogeneity in schooling quality. The paper concludes that promoting equity in education in East Africa requires policies that go beyond raising average school quality and should attend to the distribution of school quality as well as assortative matching between households and schools.
Subjects: 
inequality of opportunity
education achievement
decomposition
household
school
sorting
Africa
JEL: 
D6
H0
I2
O1
Document Type: 
Working Paper

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