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

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Author Info
Francisco A. Gallego

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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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Publisher 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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Related research
Keywords: Vouchers; School choice; incentives; Chile;

Find related papers by JEL classification:
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. Claudio Sapelli & Bernardita Vial, 2003. "Peer Effects and Relative Performance of Voucher Schools in Chile," Documentos de Trabajo 256, Instituto de Economía. Pontificia Universidad Católica de Chile.. [Downloadable!]
    Other versions:
  3. Joshua Angrist & Eric Bettinger & Eric Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," Natural Field Experiments 0004, The Field Experiments Website. [Downloadable!]
    Other versions:
  4. Carnoy, Martin, 1997. "Is Privatization through Education Vouchers Really the Answer? A Comment," World Bank Research Observer, Oxford University Press, vol. 12(1), pages 105-16, February. [Downloadable!]
  5. Dante Contreras, 2002. "Vouchers, School Choice and the Access to Higher Education," Working Papers 845, Economic Growth Center, Yale University. [Downloadable!]
  6. Claudio Sapelli & Bernardita Vial, 2002. "The Performance of Private and Public Schools in the Chilean Voucher System," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 39(118), pages 423-454. [Downloadable!]
  7. Claudio Sapelli, 2003. "The Chilean Voucher System: Some New Results and Research Challenges," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 530-538. [Downloadable!]
  8. 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. [Downloadable!] (restricted)
  9. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
    Other versions:
  11. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August. [Downloadable!] (restricted)
  12. Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall. [Downloadable!] (restricted)
  13. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April. [Downloadable!] (restricted)
    Other versions:
  14. 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. [Downloadable!] (restricted)
    Other versions:
  15. Francisco A. Gallego, 2002. "Competencia y Resultados Educativos: Teoría y Evidencia para Chile," Working Papers Central Bank of Chile 150, Central Bank of Chile. [Downloadable!]
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. West, Martin R. & Woessmann, Ludger, 2008. ""Every Catholic Child in a Catholic School": Historical Resistance to State Schooling, Contemporary Private Competition, and Student Achievement across Countries," IZA Discussion Papers 3818, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Patrinos, Harry Anthony, 2008. "Quality of schooling, returns to schooling and the 1981 vouchers reform in Chile," Policy Research Working Paper Series 4617, The World Bank. [Downloadable!]
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