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Peer Effects And Relative Performance Of Voucher Schools In Chile

  • Bernardita Vial
  • Claudio Sapelli

The empirical literature developed to evaluate the voucher system in Chile faced, up until late 1999, methodological and/or data limitations. Since then, the literature has used individual data and introduced a correction for selection bias. However, the treatment parameters do not take into account that voucher schools work with different budgets. Also, the importance of the peer effect has not been discussed in the treatment literature. In the first section of this paper we control for the amount of additional per capita government funds received by public schools. We find that when public and private voucher schools receive similar per capita subsidies, the effect of treatment on the treated (where treatment is attendance to a private voucher school) is large in magnitude and statistically significant. Since this result could be the consequence of sorting and the peer effect, and not of the effectiveness of private voucher schools, in the second section of the paper we estimate new treatment parameters, controlling for peer group characteristics. However, even when we condition on peer group characteristics, we find a treatment parameter that is positive, large in magnitude and statistically significant (when public and private voucher schools receive similar per capita subsidies). Hence, positive treatment effects are not due to the peer effect and/ or sorting

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Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 96.

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Date of creation: 11 Aug 2004
Date of revision:
Handle: RePEc:ecm:latm04:96
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  1. Caroline M. Hoxby, 2002. "School Choice and School Productivity (or Could School Choice be a Tide that Lifts All Boats?)," NBER Working Papers 8873, National Bureau of Economic Research, Inc.
  2. Francisco Gallego, 2002. "Competencia y Resultados Educativos: Teoría y Evidencia para Chile," Documentos de Trabajo 217, Instituto de Economia. Pontificia Universidad Católica de Chile..
  3. Claudio Sapelli & Bernardita Vial, 2002. "The Performance of Private and Public Schools in the Chilean Voucher System," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 39(118), pages 423-454.
  4. Alejandra Mizala & Pilar Romaguera, 2000. "School Performance and Choice: The Chilean Experience," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 392-417.
  5. James J. Heckman & Justin L. Tobias & Edward Vytlacil, 2000. "Simple Estimators for Treatment Parameters in a Latent Variable Framework with an Application to Estimating the Returns to Schooling," NBER Working Papers 7950, National Bureau of Economic Research, Inc.
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