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On the determinants and implications of school choice: semi - structural simulations for Chile

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  • Gallego, Francisco A.
  • Hernando, Andrés E.

Abstract

This paper studies the implications of school choice in the context of the Chilean quasivoucher system. We use information of school choices of about 80,000 students that lived in the Metropolitan Area of Santiago in Chile in 2002 and the results of the discrete choice model estimated in Gallego and Hernando (2008) to perform a number of exercises aimed at quantifying what we call the "value of choice" (i.e. how much do households gain from a school choice system?) against a number of counterfactuals that restrict school choice in several dimensions (geographic choice, the existence of top ups, and the supply of voucher schools). We also (i) analyze the effects on socioeconomic segregation of students and (ii) study the potential effects of introducing a non-flat voucher that is decreasing in students’ SES. Our results suggest that overall, school choice seems to be valuable to households, but there is a lot of heterogeneity in its value. In some simulations, school choice is regressive (as when lotteries are used to allocate students to current schools; or when we consider the effects of the increase in the supply of voucher schools) and in other progressive (when students are allowed to choose outside the county in which they live). Interestingly, policies that restrict the use of top ups to the voucher do not seem to reduce segregation in a significant way. This contrasts with the introduction of a differentiated voucher, which would mostly benefit the poor and even compensate them for loses from some dimensions of school choice observed in particular groups.
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  • Gallego, Francisco A. & Hernando, Andrés E., 2008. "On the determinants and implications of school choice: semi - structural simulations for Chile," LSE Research Online Documents on Economics 123353, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123353
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    1. Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2005. "The Central Role of Noise in Evaluating Interventions That Use Test Scores to Rank Schools," American Economic Review, American Economic Association, vol. 95(4), pages 1237-1258, September.
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    Cited by:

    1. Andrade, Eduardo & Moita, Rodrigo & Silva, Carlos, 2013. "Common factors and the exchange rate: results from the Brazilian case," Insper Working Papers wpe_317, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    2. Francisco Gallego & Andrés Hernando, 2009. "School Choice in Chile: Looking at the Demand Side," Documentos de Trabajo 356, Instituto de Economia. Pontificia Universidad Católica de Chile..
    3. Cáceres-Delpiano, Julio & Giolito, Eugenio & Castillo, Sebastián, 2018. "Early impacts of college aid," Economics of Education Review, Elsevier, vol. 63(C), pages 154-166.
    4. Sevilla, María Paola & Treviño, Ernesto, 2021. "Socioeconomic segregation between and within curriculum tracking," International Journal of Educational Development, Elsevier, vol. 87(C).
    5. Diego Amador & Juan-Andrés Castro & Nicolás Grau, 2019. "Telling schools apart: the role of preferences, constraints, and the ability to differentiate between schools in parents' choices," Documentos CEDE 17343, Universidad de los Andes, Facultad de Economía, CEDE.
    6. Tomás Rau & Sergio Urzúa & Loreto Reyes, 2015. "Early Exposure to Hazardous Waste and Academic Achievement: Evidence from a Case of Environmental Negligence," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(4), pages 527-563.
    7. Patrinos, Harry A. & Sakellariou, Chris, 2011. "Quality of Schooling, Returns to Schooling and the 1981 Vouchers Reform in Chile," World Development, Elsevier, vol. 39(12), pages 2245-2256.
    8. Kutscher, Macarena & Nath, Shanjukta & Urzúa, Sergio, 2023. "Centralized admission systems and school segregation: Evidence from a national reform," Journal of Public Economics, Elsevier, vol. 221(C).
    9. Gershberg, Alec Ian & González, Pablo Alberto & Meade, Ben, 2012. "Understanding and Improving Accountability in Education: A Conceptual Framework and Guideposts from Three Decentralization Reform Experiences in Latin America," World Development, Elsevier, vol. 40(5), pages 1024-1041.
    10. Gallego Francisco, 2013. "When Does Inter-School Competition Matter? Evidence from the Chilean “Voucher” System," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 525-562, August.
    11. Ricardo Paredes & Matías Fresard, 2018. "Voucher y cierre de escuelas en Chile," Estudios Públicos, Centro de Estudios Públicos, vol. 0(151), pages 7-27.
    12. Herskovic, Luis, 2020. "The Effect of Subway Access on School Choice," Economics of Education Review, Elsevier, vol. 78(C).
    13. Andrade, Eduardo de Carvalho & Moita, Rodrigo Menon Simões & Silva, Carlos Eduardo Lobo, 2011. "Permanent Excess Demand as Business Strategy: An Analysis of the Brazilian Higher-Education Market," Insper Working Papers wpe_245, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    14. Kenzo Asahi, 2014. "The Impact of Better School Accessibility on Student outcomes," SERC Discussion Papers 0156, Centre for Economic Performance, LSE.
    15. Benjamin Feigenberg, 2021. "Priced Out: Aggregate Income Shocks And School Pricing In The Chilean Voucher Market," Economic Inquiry, Western Economic Association International, vol. 59(2), pages 696-721, April.
    16. Chumacero, Rómulo & Paredes, Ricardo, 2011. "Favored child? School choice within the family," MPRA Paper 31838, University Library of Munich, Germany.
    17. Andrade, Eduardo de C. & Moita, Rodrigo M., 2009. "Peer Effect and Competition in Higher Education," Insper Working Papers wpe_185, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    18. Nicolás Grau, 2016. "A Dynamic Model of Elementary School Choice," Working Papers wp417, University of Chile, Department of Economics.

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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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