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School Choice, Incentives, and Academic Outcomes: Evidence from Chile

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  • Francisco A. Gallego

Abstract

This paper examines the effects of inter-school competition on student outcomes by using exogenous variation in the availability of private schools in Chile. Given that naïve estimates of the effects of competition on student outcomes are biased by endogenous entry of schools, this paper uses variation in the number of Catholic priests per capita in different school markets, as an exogenous determinant of the supply of private schools. Results suggest that greater competition significantly raises both test scores and the productivity of schools. There is also evidence that the effects of school choice are significantly larger for students attending subsidized private schools, and insignificant or even negative for students attending public schools facing softer budget constraints

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File URL: http://repec.org/esLATM04/up.17368.1080314323.pdf
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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 39.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:latm04:39

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Keywords: Vouchers; School choice; incentives; Chile;

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References

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  1. Hoxby, Caroline M., 1999. "The productivity of schools and other local public goods producers," Journal of Public Economics, Elsevier, vol. 74(1), pages 1-30, October.
  2. Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," American Economic Review, American Economic Association, vol. 92(5), pages 1535-1558, December.
  3. Dante Contreras, 2002. "Vouchers, School Choice and the Access to Higher Education," Working Papers 845, Economic Growth Center, Yale University.
  4. Derek Neal, 2002. "How Vouchers Could Change the Market for Education," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 25-44, Fall.
  5. Claudio Sapelli & Bernardita Vial, 2002. "The Performance of Private and Public Schools in the Chilean Voucher System," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 39(118), pages 423-454.
  6. Claudio Sapelli, 2003. "The Chilean Voucher System: Some New Results and Research Challenges," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 530-538.
  7. Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall.
  8. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  9. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
  10. Francisco A. Gallego, 2002. "Competencia y Resultados Educativos: Teoría y Evidencia para Chile," Working Papers Central Bank of Chile 150, Central Bank of Chile.
  11. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December.
  12. Carnoy, Martin, 1997. "Is Privatization through Education Vouchers Really the Answer? A Comment," World Bank Research Observer, World Bank Group, vol. 12(1), pages 105-16, February.
  13. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
  14. Estelle James, 1993. "Why Do Different Countries Choose a Different Public-Private Mix of Educational Services?," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 571-592.
  15. Claudio Sapelli & Bernardita Vial, 2003. "Peer Effects and Relative Performance of Voucher Schools in Chile," Documentos de Trabajo 256, Instituto de Economia. Pontificia Universidad Católica de Chile..
  16. Caroline M. Hoxby, 2003. "The Economics of School Choice," NBER Books, National Bureau of Economic Research, Inc, number hox03-1.
  17. Chang-Tai Hsieh & Miguel Urquiola, 2003. "When Schools Compete, How Do They Compete? An Assessment of Chile's Nationwide School Voucher Program," NBER Working Papers 10008, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Martin R. West & Ludger Woessmann, 2010. "'Every Catholic Child in a Catholic School': Historical Resistance to State Schooling, Contemporary Private Competition and Student Achievement across Countries," Economic Journal, Royal Economic Society, vol. 120(546), pages F229-F255, 08.
  2. Marina Bassi & Sergio Urzúa, 2010. "Educación en Chile: El desafío está en la calidad," IDB Publications 37998, Inter-American Development Bank.
  3. Andrea Repetto & Alejandra Mizala & Bernardo Lara, 2010. "The Effectiveness of Private Voucher Education: Evidence from Structural School Switches," 2010 Meeting Papers 104, Society for Economic Dynamics.
  4. Francisco Gallego, 2012. "When does Inter-School Competition Matter? Evidence from the Chilean 'Voucher' System," Documentos de Trabajo 429, Instituto de Economia. Pontificia Universidad Católica de Chile..
  5. Patrinos, Harry A. & Sakellariou, Chris, 2011. "Quality of Schooling, Returns to Schooling and the 1981 Vouchers Reform in Chile," World Development, Elsevier, vol. 39(12), pages 2245-2256.
  6. Francisco Gallego & Andrés Hernando, 2009. "School Choice in Chile: Looking at the Demand Side," Documentos de Trabajo 356, Instituto de Economia. Pontificia Universidad Católica de Chile..
  7. Gerald Eisenkopf & Ansgar Wohlschlegel, 2011. "Regulation in the Market for Education and Optimal Choice of Curriculum," Working Paper Series of the Department of Economics, University of Konstanz 2011-16, Department of Economics, University of Konstanz.
  8. MacLeod, W. Bentley & Urquiola, Miguel, 2012. "Competition and Educational Productivity: Incentives Writ Large," IZA Discussion Papers 7063, Institute for the Study of Labor (IZA).
  9. Francisco Henríquez & Alejandra Mizala & Andrea Repetto, 2009. "Effective Schools for Low Income Children: a Study of Chile’s Sociedad de Instrucción Primaria," Documentos de Trabajo 258, Centro de Economía Aplicada, Universidad de Chile.
  10. Marcela Rom‡n & Marcela Perticar‡, 2012. "Student mobility in low quality schools: Segmentation among the most vulnerable students," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 159-177, December.
  11. W. Bentley MacLeod & Miguel Urquiola, 2009. "Anti-Lemons: School Reputation and Educational Quality," NBER Working Papers 15112, National Bureau of Economic Research, Inc.

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