Do vouchers lead to sorting under random private school selection? Evidence from the Milwaukee voucher program
AbstractThis paper analyzes the impact of voucher design on student sorting in the application and enrollment phases of parental choice. Much of the existing literature investigates the question of sorting where private schools can screen students. However, the publicly funded U.S. voucher programs require private schools to accept all students unless oversubscribed and to pick students randomly if oversubscribed. In the context of a theoretical model, this paper argues that this feature coupled with the absence of topping up of vouchers can preclude sorting by income in the application stage, although there is still sorting by ability. This design can avert sorting by ability in the enrollment stage, but revelation of new monetary costs can lead to sorting by income. Using a logit model and student level data from the Milwaukee voucher program for 1990–1994, this study finds robust evidence that this indeed has been the case in reality.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics of Education Review.
Volume (Year): 34 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/econedurev
Vouchers; Sorting; Cream skimming;
Other versions of this item:
- Rajashri Chakrabarti, 2009. "Do vouchers lead to sorting under random private-school selection? Evidence from the Milwaukee voucher program," Staff Reports 379, Federal Reserve Bank of New York.
- Rajashri Chakrabarti, 2005. "Do Vouchers Lead to Sorting under Random Private School Selection? Evidence from the Milwaukee Voucher Program," Public Economics 0512004, EconWPA.
- H0 - Public Economics - - General
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
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