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Responses of Private and Public Schools to Voucher Funding:The Czech and Hungarian Experience

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Author Info

  • Randall K. Filer

    (Hunter College and the Graduate Center CUNY; CERGE-EI)

  • Daniel Münich

    (CERGE-EI)

Abstract

A state monopoly in schooling followed the collapse of communism in Central Europe. The centrally planned system was abandoned. Systems comparable with educational voucher scheme, also known as school choice system, were introduced in the Czech Republic and Hungary in the early 1990s. The newly established system of school financing allocates public funds according to the number of students enrolled in a school. Accredited non-state schools, private and religious, are also eligible for public subsidies. The scope and the form of these reforms represent a unique opportunity to test conflicting hypotheses of proponents and opponents of the voucher scheme. In this empirical analysis, we test fundamental theoretical predictions of the voucher model. Specifically, we test: i) whether non-state schools are established at locations where the supply of educational opportunities provided by state schools is low or of low quality, ii) whether state and non-state schools in such a system respond to changes in demand for education, and iii) whether state schools respond to competition from non-state schools. We use detailed school level data on the whole population of schools and data on regional conditions. In our econometric model we estimate education value added, instead of relying on absolute quality of school graduates. We find that non-state school emerge at locations with excess demand and lower quality state schools. We also find that greater competition from non-state schools creates incentives for state schools with the result that state schools slightly improve the quality of educational inputs used and significantly improve their output, quality of graduates. As concerns the technical schools, we find that non-state schools react to regional labor market conditions in terms of technical branch premium and unemployment rate. We do not find such reactions to market signals by state schools. We introduce this analysis with a review of non-state schools' development in the Czech Republic and Hungary during the 1990s.

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File URL: http://128.118.178.162/eps/hew/papers/0012/0012002.pdf
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Bibliographic Info

Paper provided by EconWPA in its series HEW with number 0012002.

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Length: 65 pages
Date of creation: 12 Feb 2001
Date of revision:
Handle: RePEc:wpa:wuwphe:0012002

Note: Type of Document - Acrobat PDF; pages: 65 ; figures: included
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Web page: http://128.118.178.162

Related research

Keywords: Educational Finance; Government Expenditures and Education; Occupational Choice; Labor Productivity;

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References

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  1. Randall K. Filer & Jan Hanousek, 2001. "Output Changes and Inflationary Bias in Transition," Macroeconomics 0012010, EconWPA.
  2. Münich, Daniel & Svejnar, Jan & Terrell, Katherine, 2000. "Returns to Human Capital under the Communist Wage Grid and During the Transition to a Market Economy," IZA Discussion Papers 122, Institute for the Study of Labor (IZA).
  3. Robert S. Chase, 1998. "Markets for communist human capital: Returns to education and experience in the Czech republic and Slovakia," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 401-423, April.
  4. John Micklewright & UNICEF Innocenti Research Centre, 2000. "Education, Inequality and Transition," Innocenti Working Papers inwopa00/3, UNICEF Innocenti Research Centre.
  5. Laporte, B. & Ringold, D., 1997. "Trends in Education Access and Fanincing During the Transition in Central and Eastern Europe," Papers 361, World Bank - Technical Papers.
  6. Filer, Randall K. & Jurajda, Stepan & Planovsky, Jan, 1999. "Education and wages in the Czech and Slovak Republics during transition," Labour Economics, Elsevier, vol. 6(4), pages 581-593, November.
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Citations

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Cited by:
  1. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer, vol. 15(2), pages 199-230, April.
  2. Jurajda, Stepan & Münich, Daniel, 2008. "Gender Gap in Performance under Competitive Pressure," CEPR Discussion Papers 7059, C.E.P.R. Discussion Papers.
  3. Randall K. Filer & Jan Hanousek, 2001. "Data Watch: Research Data from Transition Economies," William Davidson Institute Working Papers Series 416, William Davidson Institute at the University of Michigan.
  4. Ammermueller, Andreas & Heijke, Hans & Woessmann, Ludger, 2003. "Schooling Quality in Eastern Europe: Educational Production During Transition," IZA Discussion Papers 746, Institute for the Study of Labor (IZA).
  5. Harry Anthony Patrinos & Felipe Barrera-Osorio & Juliana Guaqueta, 2009. "The Role and Impact of Public-Private Partnerships in Education," World Bank Publications, The World Bank, number 2612, August.
  6. Herrera Gómez, Marcos, 2006. "Efecto de la Competencia de la Educación Privada sobre la Calidad de la Educación Pública
    [Effect of Private Education Competition on the Quality of Public Education]
    ," MPRA Paper 30772, University Library of Munich, Germany.
  7. Clive Belfield, 2003. "Political Preferences And The Privatization Of Education: Evidence From The UK," Education Economics, Taylor & Francis Journals, vol. 11(2), pages 155-168.
  8. Stepan Jurajda & Daniel Munich, 2005. "Admission to Selective Schools, Alphabetically," CERGE-EI Working Papers wp282, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  9. Francisco A. Gallego, 2002. "Competencia y Resultados Educativos: Teoría y Evidencia para Chile," Working Papers Central Bank of Chile 150, Central Bank of Chile.
  10. Ludger Wö�mann, 2006. "Bildungspolitische Lehren aus den internationalen Schülertests: Wettbewerb, Autonomie und externe Leistungsüberprüfung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(3), pages 417-444, 08.

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