Look no farther: The impact of local contract teachers on student outcomes Madhuri Agarwal∗ Ana Balc~aoReisy November 26, 2018 Abstract The increasing number of contract teachers in developing countries has led to concerns about its effect on teacher quality. Contract teachers are in general less trained and qualified. However, they are more likely to be hired from the local community which can positively affect student outcomes by reducing social distance or through better monitoring. This paper provides additional evidence on the difference in the impact of contract and regular civil service teachers looking at the effect of being a local teacher. Using a value-added estimation method, based on data from a unique survey in India, we find that there is not a significant difference in the overall performance of the two types of teacher. However, focusing on contract teachers as an identification strategy, we observe local teachers have a significant and positive impact (0.21 to 0.23 standard deviation) on student learning for grade 6. Keywords: teacher quality, contract teacher, local teacher, developing countries JEL Codes: I21,I28, J45 ∗
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[email protected] Nova School of Business and Economics, Universidade Nova de Lisboa, Campus de Cam- polide 1099-032 LISBOA,Portugal We are grateful to Rukmini Banerji and Wilima Wadhwa for sharing the data and their constant support and guidance. We would like to thank Martina Viarengo and Chitra Jogani for their valuable suggestions during the 2018 Development Economics and Policy conference in Zurich and Eric Hanushek for impotant comments during the 4th LEER Conference on Education Economics, Leuven.