IDEAS home Printed from https://ideas.repec.org/p/bdr/borrec/1087.html
   My bibliography  Save this paper

School Vouchers, Labor Markets and Vocational Education

Author

Listed:
  • Eric Bettinger

    ()

  • Michael Kremer

    ()

  • Maurice Kugler

    ()

  • Carlos Medina

    () (Banco de la República de Colombia)

  • Christian Posso

    () (Banco de la República de Colombia)

  • Juan E. Saavedra

    ()

Abstract

We provide evidence on the long-run impact of vouchers for private secondary schools, evidence collected twenty years after students applied for the vouchers. Prior to the voucher lottery, students applied to either an academic or vocational secondary school, an important mediating factor in the vouchers’ impacts. We find strong tertiary education and labor market effects for those students who applied to vocational schools with almost no impact on those who applied to academic schools. The labor market gains for vocational students are strongest at the top of the distribution and null at the bottom of the distribution. We find additional longrun impacts on consumption, and teen-age fertility. The expected net present value of benefits to participants and to taxpayers was large and positive implying that the program was welfare improving unless net externalities were large and negative. **** RESUMEN: En este trabajo estudiamos los impactos de largo plazo del programa de becas PACES para educación secundaria privada, para alumnos de bajos recursos, utilizando información recolectada veinte años después de que los estudiantes aplicaran a la beca. Previo a la asignación aleatoria, los estudiantes debían escoger entre un colegio académico o vocacional, factor importante en el impacto de las becas. Encontramos fuertes efectos sobre la educación superior y el mercado laboral para aquellos estudiantes que aplicaron a colegios vocacionales y casi ningún impacto sobre aquellos que aplicaron a un colegio académico. Las ganancias laborales de los estudiantes vocacionales son más fuertes en la parte superior de la distribución y nulas en la parte inferior. Se encuentran impactos adicionales de largo plazo sobre consumo y embarazo adolescente. El valor presente neto esperado de los beneficios de los participantes y los contribuyentes fue positivo y de gran magnitud, lo que significaría mejoras sustancialmente en el bienestar social, a menos de que existieran externalidades netas grandes y negativas.

Suggested Citation

  • Eric Bettinger & Michael Kremer & Maurice Kugler & Carlos Medina & Christian Posso & Juan E. Saavedra, 2019. "School Vouchers, Labor Markets and Vocational Education," Borradores de Economia 1087, Banco de la Republica de Colombia.
  • Handle: RePEc:bdr:borrec:1087
    DOI: 10.32468/be.1087
    as

    Download full text from publisher

    File URL: https://doi.org/10.32468/be.1087
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Juan Esteban Saavedra & Carlos Medina, 2012. "Formación para el Trabajo en Colombia," BORRADORES DE ECONOMIA 010059, BANCO DE LA REPÚBLICA.
    2. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.),Handbook of the Economics of Education, edition 1, volume 1, chapter 12, pages 697-812, Elsevier.
    3. Christian Jaramillo & Jorge Tovar, 2008. "El impacto del Impuesto al Valor Agregado sobre el gasto en Colombia," Revista Lecturas de Economía, Universidad de Antioquia - CIE, June.
    4. Karthik Muralidharan & Venkatesh Sundararaman, 2013. "The Aggregate Effect of School Choice: Evidence from a Two-stage Experiment in India," NBER Working Papers 19441, National Bureau of Economic Research, Inc.
    5. Esther Duflo & Pascaline Dupas & Michael Kremer, 2015. "Education, HIV, and Early Fertility: Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 105(9), pages 2757-2797, September.
    6. Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(1), pages 25-46, January.
    7. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1593-1660.
    8. Herrera Prada, Luis Omar & Kugler, Adriana D. & Kugler, Maurice & Saavedra, Juan Esteban, 2015. "Long-Term Direct and Spillover Effects of Job Training: Experimental Evidence from Colombia," CEPR Discussion Papers 10859, C.E.P.R. Discussion Papers.
    9. Thomas J. Kane, 2003. "A Quasi-Experimental Estimate of the Impact of Financial Aid on College-Going," NBER Working Papers 9703, National Bureau of Economic Research, Inc.
    10. James J. Heckman & Dimitriy V. Masterov, 2007. "The Productivity Argument for Investing in Young Children ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 446-493.
    11. Orazio Attanasio & Arlen Guarín & Carlos Medina & Costas Meghir, 2017. "Vocational Training for Disadvantaged Youth in Colombia: A Long-Term Follow-Up," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 131-143, April.
    12. Darwin Cortés & Juan Gallego & Darío Maldonado, 2011. "On the Design of Education Conditional Cash Transfer Programs and non Education Outcomes: The Case of Teenage Pregnancy," CESifo Working Paper Series 3531, CESifo.
    13. Lisa Barrow & Cecilia Elena Rouse, 2008. "School vouchers: recent findings and unanswered questions," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 32(Q III), pages 2-16.
    14. James J. Heckman, 2008. "Schools, Skills, And Synapses," Economic Inquiry, Western Economic Association International, vol. 46(3), pages 289-324, July.
    15. World Bank, 2003. "Tertiary Education in Colombia : Paving the Way for Reform," World Bank Publications, The World Bank, number 15135, June.
    16. 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.
    17. Miguel Urquiola, 2005. "Does School Choice Lead to Sorting? Evidence from Tiebout Variation," American Economic Review, American Economic Association, vol. 95(4), pages 1310-1326, September.
    18. Joshua Angrist & Eric Bettinger & Michael Kremer, 2006. "Long-Term Educational Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia," American Economic Review, American Economic Association, vol. 96(3), pages 847-862, June.
    19. Susan Dynarski & Joshua Hyman & Diane Whitmore Schanzenbach, 2013. "Experimental Evidence on the Effect of Childhood Investments on Postsecondary Attainment and Degree Completion," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(4), pages 692-717, September.
    20. Eric Bettinger & Michael Kremer & Juan E. Saavedra, 2010. "Are Educational Vouchers Only Redistributive?," Economic Journal, Royal Economic Society, vol. 120(546), pages 204-228, August.
    21. Roberto Angulo & Alejandro Gaviria & Liliana Morales, 2013. "La década ganada: evolución de la clase media y las condiciones de vida en Colombia, 2002-2011," Documentos CEDE 011895, Universidad de los Andes - CEDE.
    22. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    School choice; scholarships; formal earnings; access to higher education; access to consumer credit; fertility; elección de colegio; becas; ingresos formales; acceso a educación superior; acceso a crédito de consumo; fertilidad.;

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdr:borrec:1087. 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: (Clorith Angélica Bahos Olivera). General contact details of provider: http://edirc.repec.org/data/brcgvco.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.