Competition and Voice in Public Education: Evidence from Sweden

While numerous studies examine the effects of school competition on student performance, little research directly addresses a key critique of competition: its potential to negatively affect parental engagement and voice. We draw on Hirschman's theory of voice to argue that voucher-based school competition increases opportunities for exit but may crowd out voice. To assess the causal effects of competition on parental voice, we use a robust two-way fixed effects difference-in-differences framework, comparing municipalities in Sweden that introduced competition with those that did not. Our findings indicate that school complaints decline following the introduction of competition. This decrease in voice is driven by neither a decrease in problems in school nor by changes in teaching staff quality or attrition. This suggests that the decrease in complaints is driven not by an increase in school quality but rather by a change in how much parents voice their concerns. These results offer new insights into the unintended consequences of school competition reforms, highlighting how market-based policies may shape school quality beyond their intended effects.