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School closure and educational attainment: Evidence from a market-based system

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  • Grau, Nicolas
  • Hojman, Daniel
  • Mizala, Alejandra

Abstract

This paper studies the effect of school closure in the Chilean market-oriented educational system. Between 2002 and 2011 the system exhibited a large turnover: 1282 schools closed -roughly one-tenth of the current stock- and 2350 new schools entered, mostly private-voucher schools. We use a large panel of administrative data, which contains individual students’ academic achievement and socio-demographic characteristics, to estimate some of the potential educational costs of this dynamics. We identify a causal effect of school closures on school dropouts and grade retention. School closure increases the probability of high-school dropout between 49 and 68% (1.8 and 2.5 percentage points). Also, school exit implies between 3.9 and 4.4 percentage points increase in the probability of grade retention in fifth grade.

Suggested Citation

  • Grau, Nicolas & Hojman, Daniel & Mizala, Alejandra, 2018. "School closure and educational attainment: Evidence from a market-based system," Economics of Education Review, Elsevier, vol. 65(C), pages 1-17.
    • Handle: RePEc:eee:ecoedu:v:65:y:2018:i:c:p:1-17
    DOI: 10.1016/j.econedurev.2018.05.003
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    Cited by:

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    3. Said Bouznad & Aomar Ibourk, 2020. "School Closures, Equality of Opportunity: Some Recommendations," Revista romaneasca pentru educatie multidimensionala - Journal for Multidimensional Education, Editura Lumen, Department of Economics, vol. 12(2Sup1), pages 103-110, September.
    4. Yuanyuan Zhu & John Aloysius Zinda & Qin Liu & Yukuan Wang & Bin Fu & Ming Li, 2023. "Accessibility of Primary Schools in Rural Areas and the Impact of Topography: A Case Study in Nanjiang County, China," Land, MDPI, vol. 12(6), pages 1-18, May.
    5. Shwetlena Sabarwal & Sergio Venegas Marin & Marla Spivack & Diego Ambasz, 2024. "Choosing Our Future," World Bank Publications - Reports 42098, The World Bank Group.
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    7. Xie, Gang & Zhang, Lei, 2022. "Effects of school closure on household labor supply: Evidence from rural China," China Economic Review, Elsevier, vol. 71(C).
    8. Zachary Parolin & Emma K. Lee, 2021. "Large socio-economic, geographic and demographic disparities exist in exposure to school closures," Nature Human Behaviour, Nature, vol. 5(4), pages 522-528, April.
    9. Edmark, Karin, 2025. "The impact of local supply of upper secondary field of study," Working Paper Series 2025:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Díaz, Juan & Grau, Nicolás & Reyes, Tatiana & Rivera, Jorge, 2021. "The impact of grade retention on juvenile crime," Economics of Education Review, Elsevier, vol. 84(C).
    11. Bellei, Cristián & Contreras, Mariana & Guajardo, Fabián, 2025. "Families' responses to a new centralized school admission system. School choice and justice in education," International Journal of Educational Development, Elsevier, vol. 113(C).

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    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I2 - Health, Education, and Welfare - - Education

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