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School Choice in Chile: Looking at the Demand Side

Author

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  • Francisco Gallego

    () (Instituto de Economía. Pontificia Universidad Católica de Chile.)

  • Andrés Hernando

Abstract

How do parents choose among schools when they are allowed to do so? In this paper, we analyze detailed information of 70,000 fourth-graders attending about 1,200 publicly subsidized schools in the context of the Chilean voucher system. We model the school choice of a household as a discrete choice of a single school, based on the random utility model developed by McFadden (1974) and the specification of Berry, Levinsohn, and Pakes (1995), which includes choice-specific unobservable characteristics and deals with potential endogeneity. Our results imply that households value some attributes of schools, with the two most important dimensions being test scores and distance to school. Interestingly, at the same time, our results suggest there is a lot of heterogeneity in preferences because the valuation of most school attributes depend on household characteristics. In particular, we find that while proximity to school is an inferior attribute, test scores is a normal attribute. We present evidence that our results are mainly driven by self-selection and not by school-side selection. As a nal check, we compute the average enrollment elasticity with respect to all school attributes and find that higher elasticities are correlated with higher supply of the attribute, especially in the case of test scores-enrollment elasticities for private schools.

Suggested Citation

  • 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..
  • Handle: RePEc:ioe:doctra:356
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    File URL: http://www.economia.uc.cl/docs/dt_356.pdf
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    References listed on IDEAS

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    1. Francisco Gallego, 2002. "Competencia y Resultados Educativos: Teoría y Evidencia para Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 39(118), pages 309-352.
    2. Dante Contreras & Paulina Sepúlveda & Sebastián Bustos, 2010. "When Schools Are the Ones that Choose: The Effects of Screening in Chile," Social Science Quarterly, Southwestern Social Science Association, vol. 91(s1), pages 1349-1368.
    3. Justine S. Hastings & Jeffrey M. Weinstein, 2007. "No Child Left Behind: Estimating the Impact on Choices and Student Outcomes," NBER Working Papers 13009, National Bureau of Economic Research, Inc.
    4. Daniele Checchi & Tullio Jappelli, 2002. "School choice and quality," Departmental Working Papers 2002-28, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    5. Claudio Sapelli, 2003. "The Chilean Voucher System: Some New Results and Research Challenges," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 530-538.
    6. Francisco A. Gallego & Andres E. Hernando, 2008. "On the Determinants and Implications of School Choice: Semi-Structural Simulations for Chile," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Fall 2008), pages 197-244, August.
    7. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2004. "Tiebout Sorting, Social Multipliers and the Demand for School Quality," NBER Working Papers 10871, National Bureau of Economic Research, Inc.
    8. Chumacero, Romulo & Gómez Caorsi, Daniel & Paredes, Ricardo, 2008. "I would walk 500 miles (if it paid)," MPRA Paper 15125, University Library of Munich, Germany, revised Dec 2008.
    9. Francisco A. Gallego, 2004. "School Choice, Incentives, and Academic Outcomes: Evidence from Chile," Econometric Society 2004 Latin American Meetings 39, Econometric Society.
    10. Chang-Tai Hsieh & Miguel Urquiola, 2003. "When Schools Compete, How Do They Compete? An Assessment of Chile's Nationwide School Voucher Program," NBER Working Papers 10008, National Bureau of Economic Research, Inc.
    11. Patrick Bayer & Robert McMillan, 2005. "Choice and Competition in Local Education Markets," NBER Working Papers 11802, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Meneses, Francisco & Urzua, Sergio & Paredes, Ricardo & Chumacero, Romulo, 2010. "Distance to School and Competition in the Chilean Schooling System," MPRA Paper 66573, University Library of Munich, Germany.
    2. María-Jesús Mancebón & Domingo P. Ximénez-de-Embún & Mauro Mediavilla & José-María Gómez-Sancho, 2015. "Does educational management model matter? New evidence for Spain by a quasiexperimental approach," Working Papers 2015/40, Institut d'Economia de Barcelona (IEB).
    3. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja, 2015. "Delivering education: a pragmatic framework for improving education in low-income countries," Chapters,in: Handbook of International Development and Education, chapter 6, pages 85-130 Edward Elgar Publishing.
    4. Pedro Carneiro & Jishnu Das & Hugo Reis, 2016. "The value of private schools: evidence from Pakistan," CeMMAP working papers CWP22/16, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    5. repec:oup:wbecrv:v:31:y:2017:i:3:p:747-766. is not listed on IDEAS
    6. Andrea Repetto & Alejandra Mizala & Bernardo Lara, 2010. "Una Mirada a la Efectividad de los Profesores en Chile," Working Papers wp_004, Adolfo Ibáñez University, School of Government.
    7. R—mulo A. Chumacero & Ricardo D. Paredes, 2012. "Vouchers, choice, and public policy: An overview," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 115-122, December.
    8. Francisco Henríquez & Alejandra Mizala & Andrea Repetto, 2009. "Effective Schools for Low Income Children: a Study of Chile’s Sociedad de Instrucción Primaria," Documentos de Trabajo 258, Centro de Economía Aplicada, Universidad de Chile.
    9. 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.
    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 & Juan Ignacio Pinto, 2009. "El fin de la educación pública en Chile?," Estudios de Economia, University of Chile, Department of Economics, vol. 36(1 Year 20), pages 47-66, June.
    12. Alejandro Carrasco & Ernesto San Mart’n, 2012. "Voucher system and school effectiveness: Reassessing school performance difference and parental choice decision-making," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 123-141, December.
    13. Redondo S., Amaia & Muñoz H., Pablo, 2013. "Inequality and academic achievement in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    14. Chumacero, Romulo & Gómez Caorsi, Daniel & Paredes, Ricardo, 2008. "I would walk 500 miles (if it paid)," MPRA Paper 15125, University Library of Munich, Germany, revised Dec 2008.
    15. Chumacero, Rómulo A. & Gómez, Daniel & Paredes, Ricardo D., 2011. "I would walk 500 miles (if it paid): Vouchers and school choice in Chile," Economics of Education Review, Elsevier, vol. 30(5), pages 1103-1114, October.
    16. Mauro Mediavilla & Adrián Zancajo, 2015. "Is there real freedom of school choice? An analysis from Chile," Working Papers 2015/36, Institut d'Economia de Barcelona (IEB).
    17. Mizala, Alejandra & Urquiola, Miguel, 2013. "School markets: The impact of information approximating schools' effectiveness," Journal of Development Economics, Elsevier, vol. 103(C), pages 313-335.
    18. Alejandra Mizala & Miguel Urquiola, 2007. "Parental choice and school markets: The impact of information approximating school effectiveness," Documentos de Trabajo 239, Centro de Economía Aplicada, Universidad de Chile.
    19. Dante Contreras & Paulina Sepúlveda, 2017. "Effect of Lengthening the School Day on Mother's Labor Supply," World Bank Economic Review, World Bank Group, vol. 31(3), pages 747-766.
    20. Daniel G—mez & R—mulo A. Chumacero & Ricardo D. Paredes, 2012. "School choice and information," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 143-157, December.
    21. Santos, Humberto & Elacqua, Gregory, 2016. "Socioeconomic school segregation in Chile: parental choice and a theoretical counterfactual analysis," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

    More about this item

    Keywords

    School choice; Chile; vouchers; structural estimates; parental preferences;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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