School Vouchers Italian Style
School vouchers introduced recently in some Italian regions have lowered the cost of private schools. On the one hand, we provide evidence that Italian private schools may be selected for different reasons other than quality considerations. On the other hand, by exploiting individual data on voucher applicants, we present evidence that the percentage of voucher applicants is higher, the higher the average quality of private schools. We explain this with the fact that better quality schools provide better services to students, including information and consulting on vouchers. We show that enrolment in private schools responds sluggishly to changes in tuition induced by vouchers. Under stringent assumptions, we estimate the slopes of supply and demand of private education in the largest Italian region, Lombardy, during the first two years since implementation of a voucher scheme, and provide a quantitative assessment of the long-term impact of vouchers on tuition fees and enrolment in private schools.
Volume (Year): 63 (2004)
Issue (Month): 3-4 (December)
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References listed on IDEAS
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- Derek Neal, 2002. "How Vouchers Could Change the Market for Education," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 25-44, Fall.
- Cecilia Elena Rouse, 1998. "Private School Vouchers and Student Achievement: An Evaluation of the Milwaukee Parental Choice Program," The Quarterly Journal of Economics, Oxford University Press, vol. 113(2), pages 553-602.
- Vandenberghe, V. & Robin, S., 2004. "Evaluating the effectiveness of private education across countries: a comparison of methods," Labour Economics, Elsevier, vol. 11(4), pages 487-506, August.
- Gianni de Fraja, 2002.
"The Design of Optimal Education Policies,"
Review of Economic Studies,
Oxford University Press, vol. 69(2), pages 437-466.
- Brunello, Giorgio & Rocco, Lorenzo, 2004. "Diploma No Problem: Can Private Schools Be of Lower Quality than Public Schools?," IZA Discussion Papers 1336, Institute for the Study of Labor (IZA).
- Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall.
- Bertola, Giuseppe & Checchi, Daniele, 2002.
"Sorting and Private Education in Italy,"
CEPR Discussion Papers
3198, C.E.P.R. Discussion Papers.
- 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.
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