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School Choice in Chile: Looking at the Demand Side

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  • Francisco Gallego

    ()
    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

  • Andrés Hernando

Abstract

How do parents choose among schools when they are allowed to do so? In this paper, we analyze detailed information of 70,000 fourth-graders attending about 1,200 publicly subsidized schools in the context of the Chilean voucher system. We model the school choice of a household as a discrete choice of a single school, based on the random utility model developed by McFadden (1974) and the specification of Berry, Levinsohn, and Pakes (1995), which includes choice-specific unobservable characteristics and deals with potential endogeneity. Our results imply that households value some attributes of schools, with the two most important dimensions being test scores and distance to school. Interestingly, at the same time, our results suggest there is a lot of heterogeneity in preferences because the valuation of most school attributes depend on household characteristics. In particular, we find that while proximity to school is an inferior attribute, test scores is a normal attribute. We present evidence that our results are mainly driven by self-selection and not by school-side selection. As a nal check, we compute the average enrollment elasticity with respect to all school attributes and find that higher elasticities are correlated with higher supply of the attribute, especially in the case of test scores-enrollment elasticities for private schools.

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Bibliographic Info

Paper provided by Instituto de Economia. Pontificia Universidad Católica de Chile. in its series Documentos de Trabajo with number 356.

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Date of creation: 2009
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Handle: RePEc:ioe:doctra:356

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Keywords: School choice; Chile; vouchers; structural estimates; parental preferences;

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References

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  1. 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.
  2. Justine S. Hastings & Jeffrey M. Weinstein, 2007. "No Child Left Behind: Estimating the Impact on Choices and Student Outcomes," NBER Working Papers 13009, National Bureau of Economic Research, Inc.
  3. Francisco Gallego, 2002. "Competencia y Resultados Educativos: Teoría y Evidencia para Chile," Documentos de Trabajo 217, Instituto de Economia. Pontificia Universidad Católica de Chile..
  4. Francisco Gallego & Andrés E. Hernando, 2008. "On the Determinants and Implications of School Choice: Semi-Structural Simulations for Chile," Documentos de Trabajo 343, Instituto de Economia. Pontificia Universidad Católica de Chile..
  5. Daniele Checchi & Tullio Jappelli, 2002. "School choice and quality," Departmental Working Papers 2002-28, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  6. Francisco A. Gallego, 2004. "School Choice, Incentives, and Academic Outcomes: Evidence from Chile," Econometric Society 2004 Latin American Meetings 39, Econometric Society.
  7. Chumacero, Romulo & Gómez Caorsi, Daniel & Paredes, Ricardo, 2008. "I would walk 500 miles (if it paid)," MPRA Paper 15125, University Library of Munich, Germany, revised Dec 2008.
  8. Sebastián Bustos & Dante Contreras & Paulina Sepulveda, 2007. "When schools are the ones that choose: the effect of screening in Chile," Working Papers wp242, University of Chile, Department of Economics.
  9. 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.
  10. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2004. "Tiebout Sorting, Social Multipliers and the Demand for School Quality," NBER Working Papers 10871, National Bureau of Economic Research, Inc.
  11. Patrick Bayer & Robert McMillan, 2005. "Choice and Competition in Local Education Markets," NBER Working Papers 11802, National Bureau of Economic Research, Inc.
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Cited by:
  1. Andrea Repetto & Alejandra Mizala & Bernardo Lara, 2010. "Una Mirada a la Efectividad de los Profesores en Chile," Working Papers wp_004, Adolfo Ibáñez University, School of Government.
  2. R—mulo A. Chumacero & Ricardo D. Paredes, 2012. "Vouchers, choice, and public policy: An overview," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 115-122, December.
  3. 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.
  4. Chumacero, Romulo & Gómez Caorsi, Daniel & Paredes, Ricardo, 2008. "I would walk 500 miles (if it paid)," MPRA Paper 15125, University Library of Munich, Germany, revised Dec 2008.
  5. 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..
  6. Alejandro Carrasco & Ernesto San Mart’n, 2012. "Voucher system and school effectiveness: Reassessing school performance difference and parental choice decision-making," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 123-141, December.
  7. Alejandra Mizala & Miguel Urquiola, 2007. "Parental choice and school markets: The impact of information approximating school effectiveness," Documentos de Trabajo 239, Centro de Economía Aplicada, Universidad de Chile.
  8. Alejandra Mizala & Miguel Urquiola, 2007. "School Markets: The Impact of Information Approximating Schools' Effectiveness," NBER Working Papers 13676, National Bureau of Economic Research, Inc.
  9. Daniel G—mez & R—mulo A. Chumacero & Ricardo D. Paredes, 2012. "School choice and information," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 143-157, December.

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