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Does School Privatization Improve Educational Achievement? Evidence from Sweden's Voucher Reform

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Author Info
Böhlmark, Anders () (SOFI, Stockholm University)
Lindahl, Mikael () (Uppsala University)

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Abstract

This paper evaluates general achievement effects of choice and competition between private and public schools at the nine-year school level by assessing a radical voucher reform that was implemented in Sweden in 1992. Starting from a situation where the public schools essentially were monopolists on all local school markets, the degree of privatization has developed very differently across municipalities over time as a result of this reform. We estimate the impact of an increase in private enrolment on short, medium and long-term educational outcomes of all pupils using within-municipality variation over time, and control for differential pre-reform and concurrent municipality trends. We find that an increase in the private school share moderately improves short-term educational outcomes such as 9th-grade GPA and the fraction of students who choose an academic high school track. However, we do not find any impact on medium or long-term educational outcomes such as high school GPA, university attainment or years of schooling. We conclude that the first-order short-term effect is too small to yield lasting positive effects.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3691.

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Length: 34 pages
Date of creation: Sep 2008
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Handle: RePEc:iza:izadps:dp3691

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Related research
Keywords: private schooling; choice; competition; educational achievement;

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Find related papers by JEL classification:
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
I28 - Health, Education, and Welfare - - Education - - - Government Policy
H40 - Public Economics - - Publicly Provided Goods - - - General

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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 Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Hsieh, Chang-Tai & Urquiola, Miguel, 2006. "The effects of generalized school choice on achievement and stratification: Evidence from Chile's voucher program," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1477-1503, September. [Downloadable!] (restricted)
  3. Ahlin, Åsa, 2003. "Does School Competition Matter? Effects of a Large-Scale School Choice Reform on Student Performance," Working Paper Series 2003:2, Uppsala University, Department of Economics. [Downloadable!]
  4. Sandstrom, F. Mikael & Bergstrom, Fredrik, 2005. "School vouchers in practice: competition will not hurt you," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 351-380, February. [Downloadable!] (restricted)
  5. Anders Böhlmark & Mikael Lindahl, 2007. "The Impact of School Choice on Pupil Achievement, Segregation and Costs: Swedish Evidence," IZA Discussion Papers 2786, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Stephen Gibbons & Stephen Machin & Olmo Silva, 2008. "Choice, Competition, and Pupil Achievement," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 912-947, 06. [Downloadable!] (restricted)
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  7. Jacob M. Markman & Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2003. "Does peer ability affect student achievement?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 527-544. [Downloadable!]
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  8. Wikstrom, Christina & Wikstrom, Magnus, 2005. "Grade inflation and school competition: an empirical analysis based on the Swedish upper secondary schools," Economics of Education Review, Elsevier, vol. 24(3), pages 309-322, June. [Downloadable!] (restricted)
  9. 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:
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