Evidence of neighborhood e?ects on educational performance in the chilean school voucher system
This paper uses alternative measures of neighborhood quality to study its impact on student performance in school. The Chilean voucher-based education system allows us to test separately for neighborhood and traditional in-classroom peer effects, which have been traditionally empha- sized by the literature. We use the Human Development Index reported by United Nations, and the relative number of books in public libraries at the county level, to measure neighborhood quality. We ?nd that a 5 basis point increase in the HDI Index, is related to an increase of 1 to 4 points in the SIMCE test, depending on the speci?cation. The e?ect is equivalent to half a year increase in mothers education (one additional year achieves a 7 point increase in SIMCE scores). Interestingly, the e?ect remains when we look at the sample of random movers.
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