Publication: The Fiscal Cost of Weak Governance: Evidence from Teacher Absence in India
Loading...
Files in English
306 downloads
Published
2017-01
ISSN
0047-2727
Date
2018-02-05
Author(s)
Editor(s)
Abstract
The relative return to strategies that augment inputs versus those that reduce inefficiencies remains a key open question for education policy in low-income countries. Using a new nationally-representative panel dataset of schools across 1297 villages in India, we show that the large public investments in education over the past decade have led to substantial improvements in input-based measures of school quality, but only a modest reduction in inefficiency as measured by teacher absence. In our data, 23.6% of teachers were absent during unannounced school visits, and we estimate that the salary cost of unauthorized teacher absence is $1.5 billion/year. We find two robust correlations in the nationally-representative panel data that corroborate findings from smaller-scale experiments. First, reductions in student-teacher ratios are correlated with increased teacher absence. Second, increases in the frequency of school monitoring are strongly correlated with lower teacher absence. Using these results, we show that reducing inefficiencies by increasing the frequency of monitoring could be over ten times more cost effective at increasing the effective student-teacher ratio than hiring more teachers. Thus, policies that decrease the inefficiency of public education spending are likely to yield substantially higher marginal returns than those that augment inputs.
Link to Data Set
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication The Fiscal Cost of Weak Governance(World Bank, Washington, DC, 2016-02)The relative return to input-augmentation versus inefficiency-reduction strategies for improving education system performance is a key open question for education policy in low-income countries. Using a new nationally-representative panel dataset of schools across 1297 villages in India, this paper shows that the large investments over the past decade have led to substantial improvements in input-based measures of school quality, but only a modest reduction in inefficiency as measured by teacher absence. In the data, 23.6 percent of teachers were absent during unannounced visits with an associated fiscal cost of $1.5 billion/year. There are two robust correlations in the nationally-representative panel data that corroborate findings from smaller-scale experiments. First, reductions in student-teacher ratios are correlated with increased teacher absence. Second, increases in the frequency of school monitoring are strongly correlated with lower teacher absence. Simulations using these results suggest that investing in better governance by increasing the frequency of monitoring could be over ten times more cost effective at increasing teacher-student contact time (net of teacher absence) than hiring more teachers. Thus, at current margins, policies that decrease the inefficiency of public spending in India are likely to yield substantially higher returns than those that augment inputs.Publication Quality and Accountability in Healthcare Delivery(World Bank, Washington, DC, 2015-06)This paper presents direct evidence on the quality of health care in low-income settings using a unique and original set of audit studies, where standardized patients were presented to a nearly representative sample of rural public and private primary care providers in the Indian state of Madhya Pradesh. Three main findings are reported. First, private providers are mostly unqualified, but they spent more time with patients and completed more items on a checklist of essential history and examination items than public providers, while being no different in their diagnostic and treatment accuracy. Second, the private practices of qualified public sector doctors were identified and the same doctors exerted higher effort and were more likely to provide correct treatment in their private practices. Third, there is a strong positive correlation between provider effort and prices charged in the private sector, whereas there is no correlation between effort and wages in the public sector. The results suggest that market-based accountability in the unregulated private sector may be providing better incentives for provider effort than administrative accountability in the public sector in this setting. While the overall quality of care is low both sectors, the differences in provider effort may partly explain the dominant market share of fee-charging private providers even in the presence of a system of free public healthcare.Publication School Inputs, Household Substitution, and Test Scores(2011-04-01)Empirical studies of the relationship between school inputs and test scores typically do not account for the fact that households will respond to changes in school inputs. This paper presents a dynamic household optimization model relating test scores to school and household inputs, and tests its predictions in two very different low-income country settings -- Zambia and India. The authors measure household spending changes and student test score gains in response to unanticipated as well as anticipated changes in school funding. Consistent with the optimization model, they find in both settings that households offset anticipated grants more than unanticipated grants. They also find that unanticipated school grants lead to significant improvements in student test scores but anticipated grants have no impact on test scores. The results suggest that naïve estimates of public education spending on learning outcomes that do not account for optimal household responses are likely to be considerably biased if used to estimate parameters of an education production function.Publication Citizens and Service Delivery : Assessing the Use of Social Accountability Approaches in the Human Development Sectors(World Bank, 2012)Efforts by governments, donors, and civil society alike to improve governance, accountability, and development results on the ground have heightened attention to the idea that citizens can contribute to better public services by holding their policy makers, providers, and program managers accountable. While the use of social accountability to improve services in low- and middle-income countries is not new, the topic has gained currency in recent years. This book looks at how this works in practice. It aims to learn from the experiences gained from the implementation of World Bank projects and from the small, but growing, set of impact evaluations. The review is a first step to identify lessons, knowledge gaps, and questions for further research that can improve the use of these tools in government policies and through programs supported by civil society and donors, including the World Bank. The book documents a diverse and exciting set of cases the rapid adoption of access-to-information laws, the use of public expenditure tracking surveys by civil society organizations to 'follow the money' from central government budgets to schools and health clinics, and the incorporation of grievance redress mechanisms into the design of conditional cash transfer programs. Many of the examples discussed here are new initiatives, and some are being evaluated now. Much will be gained from more evaluation and the sharing of experiences across countries developed and developing alike.Publication Learning Levels and Gaps in Pakistan(World Bank, Washington, DC, 2006-11)The authors report on a survey of primary public and private schools in rural Pakistan with a focus on student achievement as measured through test scores. Absolute learning is low compared with curricular standards and international norms. Tested at the end of the third grade, a bare majority had mastered the K-I mathematics curriculum and 31 percent could correctly form a sentence with the word "school" in the vernacular (Urdu). As in high-income countries, bivariate comparisons show that higher learning is associated with household wealth and parental literacy. In sharp contrast to high-income countries, these gaps decrease dramatically in a multivariate regression once differences between children in the same school are looked at. Consequently, the largest gaps are between schools. The gap in English test scores between government and private schools, for instance, is 12 times the gap between children from rich and poor families. To contextualize these results within a broader South Asian context, the authors use data from public schools in the state of Uttar Pradesh in India. Levels of learning and the structure of the educational gaps are similar in the two samples. As in Pakistan, absolute learning is low and the largest gaps are between schools: the gap between good and bad government schools, for instance, is 5 times the gap between children with literate and illiterate mothers.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2025: Standards for Development(Washington, DC: World Bank, 2025-12-11)Standards make everyday life run smoothly. You rarely notice them: the credit card that works in any corner of the world, the Wi-Fi signal that connects a remote village to the cloud, or the vaccine vial that fits syringes from Dakar to Delhi. When standards work, they build trust. They free people and firms to focus on creating, trading, and innovating, confident that the systems around them will hold. When standards fail, the effects are immediate and draining. Payments are declined, signals drop, vaccines spoil—and instead of being productive, people spend their energy just meeting their basic needs. Standards, in short, are the hidden infrastructure of modern economies—and they have never been more important. Developing countries today must contend with a thicket of increasingly stringent international standards, a product of globalization and rapid technological change. Using standards—and shaping them—is now a prerequisite for export growth, technology diffusion, and the efficient delivery of public services. Yet standards are too often overlooked by policy makers, especially in developing countries. World Development Report 2025: Standards for Development provides the most comprehensive assessment of the global landscape of standards today and how they can be used to accelerate economic development. It offers a practical framework for countries at all stages of development. Countries at the earliest stage should adapt international standards to suit local conditions when needed, whereas at more advanced stages, they should aim to align domestic markets with international standards. Meanwhile, all countries should author international standards in priority areas.Publication Peru Public Finance Review: Mobilizing Resources for Service Delivery and Growth(Washington, DC: World Bank, 2025-11-26)Peru, once a high-growth economy achieving significant reductions in poverty, now faces stalling progress, citizen distrust and political instability. After robust growth averaging over 6 percent in the early 2000s and poverty reduction from 59 percent in 2004 to 24 percent in 2014, progress came to a halt around 2013 with weakening institutions and a pause in the commodity boom. More recently, the COVID-19 pandemic had a severe impact on Peru, which recorded the highest mortality rate globally. The pandemic intensified political instability, fueling public frustration in Peru, and delaying essential policy reforms. Today, over 90 percent of Peruvians distrust their government, a 25-percentage-point (pp) increase from 2011. Peru’s potential growth is around 2.5 percent, requiring 64 years to reach high-income country status. Nevertheless, Peru holds vast opportunities for faster development if it can seize key strategic opportunities and address long-overdue reforms, as emphasized in the Country Economic Memorandum (World Bank, 2025a).Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Reboot Development: The Economics of a Livable Planet(Washington, DC: World Bank, 2025-09-01)“Reboot Development: The Economics of a Livable Planet” explores how the foundational natural endowments of land, air, and water—long taken for granted—are under growing threat, putting at risk the very progress they helped create. For generations, natural resources have powered development, supporting health, food, energy, and economic opportunity. Today, strains on these resources are intensifying. This report argues that failing to maintain a livable planet is not merely a distant environmental concern, but a present economic threat. Drawing on new data, the report shows that over 90 percent of the world is exposed to poor air quality, degraded land, or water stress. Loss of forests cuts rainfall, dries soils, and worsens droughts, costing billions of dollars. The nitrogen paradox emerges—fertilizers boost yields but overuse in some regions harms crops and ecosystems. Meanwhile, air and water pollution silently damage health, productivity, and cognition, sapping human potential. The report warns that these hidden costs are too large to ignore. Yet the message is not one of constraint but of possibility. Nature, when wisely stewarded, can drive growth, create jobs, and build resilience. The report shows that more efficient resource use—like better nitrogen management and forest restoration—yields benefits that far exceed the costs. It also urges a shift to cleaner sectors and producing “better things,” noting that these provide new sources of growth, creating more jobs per dollar invested. The findings are clear: Investing in nature is not only good for the planet, it is smart development.Publication The World Bank Group Annual Report 2025(Washington, DC: World Bank, 2025-10-09)The World Bank Group Annual Report 2025 presents on World Bank Group activities in fiscal 2025. The Annual Report is prepared by the Executive Directors of ICSID, IFC, MIGA, and the World Bank (IBRD/IDA) in accordance with the by-laws of the institutions. The President of the World Bank Group and Chairman of the Board of Executive Directors submit the Annual Report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors.