Using data from a census of private schools in one of Lagos, Nigeria’s administrative jurisdictions, this paper explores the linkages between a heterogeneous sector of private schools and issues of school access, affordability, quality, and ultimately social mobility for households at the bottom of the income distribution. Although a large private education market has buoyed Lagos’s growth towards near-universal primary enrolment, this heterogeneous school sector appears to be providing socially stratifying paths towards educational attainment. We apply Lucas's (2001) theory of effectively maintained inequality to assess the extent to which access to higher quality education services within the private sector is determined by cost. We find that higher-cost private schools provide students with greater opportunities to study in institutions with higher quality inputs and increased potential for progression within the educational system. As such, it is highly likely that these schools are primarily accessible to students at the upper ends of the income distribution.

Abstract The implementation of school voucher programs is increasing in low-income countries. It is important for policy makers to carefully consider the appropriateness of this type of policy intervention for their particular educational contexts. This paper models an approach by which researchers and policymakers can assess the educational circumstances of a particular location, and determine the potential effectiveness of a private school voucher policy. This study provides insight into the current contributions of private schools to education provision in Tanzania, and considers the feasibility of a school voucher program to contribute to the expansion of the secondary school system, compared to the alternative expansion of public secondary education. The study offers an analysis of current educational circumstances and educational goals in Tanzania, and projects differential costs and outcomes associated with various options for expanding secondary education. Data come from two sources: (i) a census of the private schooling market in the Morogoro Urban district, conducted as part of the World Bank’s Systems Approach for Better Education Results (SABER) initiative, and (ii) Tanzania’s National Panel Survey 2010-2011. For those students unable to cover the full cost of secondary education, findings suggest that a targeted private school voucher would be an efficient and equitable policy mechanism for secondary school expansion. Such an approach would ease the financial burden on government for constructing all new schools, yet assure access for the most vulnerable.

This study provides a comparative assessment of policies governing private schools in twenty countries in Sub-Saharan Africa. Findings suggest that current regulatory systems are failing to adequately address the negative externalities and failures of private schooling markets. Insufficient capacity on the part of governments is a contributor to uneven policy implementation and creates opportunities for rent-seeking and corruption. Onerous market entry regulations offer constraints on the growth of official private education markets, but facilitate growth in unofficial markets if demand for education is not being fully met by the supply of government service provision, restricting the government’s ability to provide adequate oversight of private providers.