School Voucher Effects on Education and Labor Market Outcomes: Evidence from a Chile
This paper studies the effects of school vouchers in Chile, which adopted a nationwide school voucher program 25 years ago. Chile has a relatively unregulated, decentralized, competitive market in primary and secondary education and therefore provides a unique setting in which to study how voucher programs affect school choice as well as long-term educational and labor market outcomes. This paper develops and estimates a dynamic model of schooling and working decisions using data from the 2002 and 2004 Enquesta Proteccion Social (EPS) surveys. The dataset includes contemporaneous and retrospective schooling and work information on individuals who attended school prior to the introduction of vouchers, individuals who were in middle of their schooling careers at the time vouchers were introduced and individuals who attended solely in the post-voucher regime. The thirty five year time frame permits examination of the effects of voucher programs on long term educational and labor market outcomes.
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