Private Education Provision and Public Finance : The Netherlands

One of the key features of the Dutch education system is freedom of education -- freedom to establish schools and organize teaching. Almost 70 percent of schools in the Netherlands are administered by private school boards, and all schools are government funded equally. This allows school choice. Using an instrument to identify school choice, it is shown that the Dutch system promotes academic performance. The instrumental variables results show that private school attendance is associated with higher test scores. Private school size effects in math, reading, and science achievement are 0.17, 0.28, and 0.18