- Basab Dasgupta, Consultant (PRMPR)
- Ambar Narayan, Senior Economist (PRMPR)
- Emmanuel Skoufias, Lead Economist (PRMPR)
Discussant: Emmanuel Jimenez, Sector Director, EASHD
Abstract: Satisfaction surveys offer a potentially convenient and cost-effective means for evaluating the impact of decentralization on services. However, concerns regarding subjectivity and selection bias impede greater use of satisfaction data. This paper analyzes satisfaction data about health and educational services from the 2006 GDS-2 survey in Indonesia to assess whether satisfaction data can serve as accurate indicators of quality, despite dubiously high levels of reported satisfaction. We use a modified expectancy disconfirmation model that corrects for selection bias. We find that conditional on the choice of service provider (determined by socioeconomic characteristics and expectations), reported satisfaction varies significantly with actual quality. This two-step selection model offers important, policy-relevant insights into the aspects of service delivery that most affect satisfaction, and highlights differences in priorities across rich and poor districts. Overall, the analysis shows once selection bias and the role of expectations in facility choice have been factored in, the variation in satisfaction level can be highly informative for policymakers and researchers alike.
- Measuring the Quality of Education and Health Services: The Use of Perception Data from Indonesia
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