%0 Report
        %A Fagernäs, Sonja
%A Stevens, Diego de la Fuente
%A Pelkonen, Panu
%A Segura, Juan Manuel del Pozo
        %T Public Gains, Private Strains: Public Investment and Private Schooling in Peru
        %D 2025
        %8 2025 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18189
        %U https://www.iza.org/publications/dp18189
        %X In the 2010s, Peru experienced an increase in public educational investment, a substantial improvement in public school learning outcomes, and an erosion in the private sector learning premium. We use longitudinal, geo-coded register data on primary schools and pupils in urban areas to study how the improvement in public schooling affected private schools. With a difference in differences (DiD) framework, we demonstrate that the increase in public school quality reduced enrolment and test scores in private schools, primarily in areas with lower education levels. A staggered DiD analysis shows that new public school openings also reduced enrolment in nearby private schools.
        %K education policy
%K school quality
%K school competition
%K Latin America