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Peer Effects And Relative Performance Of Voucher Schools In Chile

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Author Info
Bernardita Vial
Claudio Sapelli

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Abstract

The empirical literature developed to evaluate the voucher system in Chile faced, up until late 1999, methodological and/or data limitations. Since then, the literature has used individual data and introduced a correction for selection bias. However, the treatment parameters do not take into account that voucher schools work with different budgets. Also, the importance of the peer effect has not been discussed in the treatment literature. In the first section of this paper we control for the amount of additional per capita government funds received by public schools. We find that when public and private voucher schools receive similar per capita subsidies, the effect of treatment on the treated (where treatment is attendance to a private voucher school) is large in magnitude and statistically significant. Since this result could be the consequence of sorting and the peer effect, and not of the effectiveness of private voucher schools, in the second section of the paper we estimate new treatment parameters, controlling for peer group characteristics. However, even when we condition on peer group characteristics, we find a treatment parameter that is positive, large in magnitude and statistically significant (when public and private voucher schools receive similar per capita subsidies). Hence, positive treatment effects are not due to the peer effect and/ or sorting

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Publisher Info
Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 96.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:latm04:96

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Related research
Keywords: Vouchers; Education; Chile;

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Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
I28 - Health, Education, and Welfare - - Education - - - Government Policy

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. Caroline M. Hoxby, 2002. "School Choice and School Productivity (or Could School Choice be a Tide that Lifts All Boats?)," NBER Working Papers 8873, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. James J. Heckman, 2001. "Micro Data, Heterogeneity, and the Evaluation of Public Policy: Nobel Lecture," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 673-748, August. [Downloadable!] (restricted)
  3. 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:
  4. 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!]
  5. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March. [Downloadable!] (restricted)
  6. Andrea Tokman Ramos, 2002. "Is Private Education Better? Evidence from Chile," Working Papers Central Bank of Chile 147, Central Bank of Chile. [Downloadable!]
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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. Idrovo Aguirre, Byron, 2007. "¿Son las escuelas particulares subvencionadas mejores que las municipales? Estimación de la ecuación de logro escolar para Chile
    [Are the subsidized particular schools better than the public sch    ," MPRA Paper 10665, University Library of Munich, Germany. [Downloadable!]
  2. Francisco A. Gallego, 2004. "School Choice, Incentives, and Academic Outcomes: Evidence from Chile," Econometric Society 2004 Latin American Meetings 39, Econometric Society. [Downloadable!]
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