Is the Price Right? A Study of the Impact of School Fees in Rural Bangladesh 29 2 IS THE PRICE RIGHT? A STUDY OF THE IMpaCT OF SCHOOL FEES IN RURAL BANGLADESH Emily Grenzke The purpose of this article is to investigate the effect that user fees have on primary school enrollment and educational at- tainment in rural Bangladesh. There is growing international consensus that school user fees should be abolished in developing countries because they pose a barrier to universal enrollment. However, where school fees are the primary source of revenue for education, abolishing them significantly threatens the quality of education provided. Using data from three different regions in Bangladesh in 1996, this article employs a Heckman model to estimate the determinants of school enrollment. The results suggest that (i) fixed enrollment fees are a barrier to partici- pation in the education market, (ii) but annual fees are not, and (iii) that the cost of secondary education has a significant impact on primary school enrollment. Based on these results, and considering the need for revenue, current policies aimed at abolishing all varieties of school fees are not justified. The article concludes by recommending advocacy for lower fixed enrollment fees and lower fees for secondary schools. 1 INTRODUCTION A 2005 government report on education in Bangladesh given to the South Asian Society for Regional Cooperation recommended that all primary Emily Grenzke is a Master of Public Policy candidate at the Terry Sanford Institute of Public Policy, Duke University (
[email protected]). 30 Emily Grenzke school user fees be abolished in the country (Ardt et al 2005, 18-19).