Do vouchers lead to sorting under random private school selection? Evidence from the Milwaukee voucher program
This paper analyzes the impact of voucher design on student sorting in the application and enrollment phases of parental choice. Much of the existing literature investigates the question of sorting where private schools can screen students. However, the publicly funded U.S. voucher programs require private schools to accept all students unless oversubscribed and to pick students randomly if oversubscribed. In the context of a theoretical model, this paper argues that this feature coupled with the absence of topping up of vouchers can preclude sorting by income in the application stage, although there is still sorting by ability. This design can avert sorting by ability in the enrollment stage, but revelation of new monetary costs can lead to sorting by income. Using a logit model and student level data from the Milwaukee voucher program for 1990–1994, this study finds robust evidence that this indeed has been the case in reality.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 34 (2013)
Issue (Month): C ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/econedurev|
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.:
- Dennis Epple & Richard Romano, 2002.
"Educational Vouchers and Cream Skimming,"
NBER Working Papers
9354, National Bureau of Economic Research, Inc.
- Rajashri Chakrabarti, 2007.
"Can increasing private school participation and monetary loss in a voucher program affect public school performance? Evidence from Milwaukee,"
300, Federal Reserve Bank of New York.
- Chakrabarti, Rajashri, 2008. "Can increasing private school participation and monetary loss in a voucher program affect public school performance? Evidence from Milwaukee," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1371-1393, June.
- Rajashri Chakrabarti, 2005. "Can Increasing Private School Participation and Monetary Loss in a Voucher Program Affect Public School Performance? Evidence from Milwaukee," Public Economics 0512003, EconWPA.
- Henry M. Levin, 1998. "Educational vouchers: Effectiveness, choice, and costs," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(3), pages 373-392.
- Dennis Epple & Richard Romano & Holger Sieg, .
"Admission, Tuition, and Financial Aid Policies in the Market for Higher Education,"
GSIA Working Papers
2003-04, Carnegie Mellon University, Tepper School of Business.
- Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, 07.
- 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.
- Holger Sieg & Dennis Epple & Richard Romano, 2003.
"Peer effects, financial aid and selection of students into colleges and universities: an empirical analysis,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 18(5), pages 501-525.
- Epple, Dennis & Romano, Richard & Sieg, Holger, 2000. "Peer Effects, Financial Aid, and Selection of Students into Colleges and Universities: An Empirical Analysis," Working Papers 00-02, Duke University, Department of Economics.
- Levin, Henry M., 1991. "The economics of educational choice," Economics of Education Review, Elsevier, vol. 10(2), pages 137-158, June.
- Maria Marta Ferreyra, 2007. "Estimating the Effects of Private School Vouchers in Multidistrict Economies," American Economic Review, American Economic Association, vol. 97(3), pages 789-817, June.
- Caroline Minter Hoxby, 2003. "School Choice and School Productivity. Could School Choice Be a Tide that Lifts All Boats?," NBER Chapters, in: The Economics of School Choice, pages 287-342 National Bureau of Economic Research, Inc.
- Dalton Conley & Rebecca Glauber, 2006. "Parental Educational Investment and Children’s Academic Risk: Estimates of the Impact of Sibship Size and Birth Order from Exogenous Variation in Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
- Epple, Dennis & Figlio, David & Romano, Richard, 2004.
"Competition between private and public schools: testing stratification and pricing predictions,"
Journal of Public Economics,
Elsevier, vol. 88(7-8), pages 1215-1245, July.
- Dennis Epple & David Figlio & Richard Romano, 2000. "Competition Between Private and Public Schools: Testing Stratification and Pricing Predictions," NBER Working Papers 7956, National Bureau of Economic Research, Inc.
- Eric J. Brunner & Jennifer Imazeki & Stephen L. Ross, 2010. "Universal Vouchers and Racial and Ethnic Segregation," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 912-927, November.
- 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.
- David E. Campbell & Martin R. West & Paul E. Peterson, 2005. "Participation in a national, means-tested school voucher program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(3), pages 523-541.
- 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.
- Figlio, David & Hart, Cassandra M.D. & Metzger, Molly, 2010. "Who uses a means-tested scholarship, and what do they choose?," Economics of Education Review, Elsevier, vol. 29(2), pages 301-317, April.
- Levin, Henry M., 1992. "Market approaches to education: Vouchers and school choice," Economics of Education Review, Elsevier, vol. 11(4), pages 279-285, December.
- William G. Howell, 2004. "Dynamic selection effects in means-tested, urban school voucher programs," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(2), pages 225-250.
When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:34:y:2013:i:c:p:191-218. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.