The Productivity of Public and Private Preschools (and Schools): Evidence from India

Abstract We study the relative productivity of private and public institutions at the preschool and primary school levels using panel data from 215 villages in Tamil Nadu. Private preschools show higher test score value-added in math and language (${\sim} 0.59 \!-\!0.74\sigma\!$) and outperform government providers in nearly all villages. This productivity difference explains 60% of the socioeconomic test score gap before school entry. These results contrast starkly with primary schooling, where we find no evidence of a private-sector premium in math and negative effects in local language. Test score value-added is positively correlated between private and government options in a village, both at the preschool and primary school levels. Quality is also correlated across levels; villages with more productive primary schools also tend to have more productive preschools. Our findings inform debates on achieving universal foundational skills and highlight the need to improve the quality of preschools available to lower-income families.