The effects of decentralization on public sector outputs is much debated but little agreed upon. This paper compares the remarkable case of Bolivia with the more complex case of Colombia to explore decentralization's effects on public education outcomes. In Colombia, decentralization of education finance improved enrollment rates in public schools. In Bolivia, decentralization made government more responsive by re-directing public investment to areas of greatest need. In both countries, investment shifted from infrastructure to primary social services. In both, it was the behavior of smaller, poorer, more rural municipalities that drove these changes. A key innovation of this paper is a methodology for estimating the effects of decentralization in a data-poor environment.
This paper estimates the effect that exposure to armed conflict has on school drop-out and labor decisions of Colombian children between the ages of six and seventeen. We use a duration analysis methodology, complemented by biprobit estimations. Both approaches take into account the possible endogeneity of municipal conflict-related events through the use of instrumental variables. We find that conflict especially affects children older than eleven, inducing them to drop out of school and enter the labor market too early. We provide evidence that such effects may be generated through higher mortality risks, negative economic shocks and lesser school quality.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.