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The Effects of Vouchers on School Results: Evidence from Chile's Targeted Voucher Program

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  • Juan A. Correa
  • Francisco Parro
  • Loreto Reyes

Abstract

We use data from Chile's targeted voucher program to test the effects of vouchers on school results. Targeted vouchers have delivered extra resources to low-income, vulnerable students since 2008. Moreover, under this scheme, additional resources are contingent on the completion of specific education reforms. Using a difference-in-differences approach and a market-level empirical analysis, we find a positive and significant effect of vouchers on standardized test scores. Additionally, our results highlight the importance of conditioning the delivery of resources to some specific academic goals in markets with institutional characteristics that prevent public schools from behaving as profit-maximizing firms.

Suggested Citation

  • Juan A. Correa & Francisco Parro & Loreto Reyes, 2014. "The Effects of Vouchers on School Results: Evidence from Chile's Targeted Voucher Program," Journal of Human Capital, University of Chicago Press, vol. 8(4), pages 351-398.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/679282
    DOI: 10.1086/679282
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    6. Anand, Priyanka & Mizala, Alejandra & Repetto, Andrea, 2009. "Using school scholarships to estimate the effect of private education on the academic achievement of low-income students in Chile," Economics of Education Review, Elsevier, vol. 28(3), pages 370-381, June.
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    Cited by:

    1. Christopher A. Neilson, 2021. "Targeted Vouchers, Competition Among Schools, and the Academic Achievement of Poor Students," Working Papers 2021-48, Princeton University. Economics Department..
    2. Benjamin Feigenberg & Steven Rivkin & Rui Yan, 2017. "Illusory Gains from Chile's Targeted School Voucher Experiment," NBER Working Papers 23178, National Bureau of Economic Research, Inc.
    3. Cuesta, José Ignacio & González, Felipe & Larroulet Philippi, Cristian, 2020. "Distorted quality signals in school markets," Journal of Development Economics, Elsevier, vol. 147(C).
    4. Alejandra Mizala & Florencia Torche, 2017. "Means-Tested School Vouchers and Educational Achievement: Evidence from Chile’s Universal Voucher System," The ANNALS of the American Academy of Political and Social Science, , vol. 674(1), pages 163-183, November.
    5. Alessandrini, Diana & Milla, Joniada, 2022. "School Choice and Higher Education Attainment," IZA Discussion Papers 15330, Institute of Labor Economics (IZA).
    6. Correa, Juan A. & Parro, Francisco & Sánchez, Rafael, 2021. "The Effect of School Voucher Spending on Initial Earnings," IZA Discussion Papers 14552, Institute of Labor Economics (IZA).
    7. Castro-Zarzur, Rosa & Espinoza, Ricardo & Sarzosa, Miguel, 2022. "Unintended consequences of free college: Self-selection into the teaching profession," Economics of Education Review, Elsevier, vol. 89(C).
    8. Contreras, Dante & Elacqua, Gregory & Martinez, Matías & Miranda, Álvaro, 2016. "Bullying, identity and school performance: Evidence from Chile," International Journal of Educational Development, Elsevier, vol. 51(C), pages 147-162.

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