TY - RPRT AU - Fagernäs, Sonja AU - Stevens, Diego de la Fuente AU - Pelkonen, Panu AU - Segura, Juan Manuel del Pozo TI - Public Gains, Private Strains: Public Investment and Private Schooling in Peru PY - 2025/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 18189 UR - https://www.iza.org/publications/dp18189 AB - 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. KW - education policy KW - school quality KW - school competition KW - Latin America ER -