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School Closure and Educational Attainment: Evidence from a Market-based System

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  • Nicolas Grau
  • Daniel Hojman
  • Alejandra Mizala

Abstract

This paper studies the effect of school closure in the Chilean market-oriented educational system. Between 2000 and 2012 the system exhibited a large turnover: 1,651 schools closed -roughly one-sixth of the current stock- and 3,029 new schools entered, mostly private-voucher schools. We use a large panel of administrative data, which con- tains individual students’ academic achievement and socio-demographic characteristics, to estimate some of the potential educational costs of this dynamics. We identify a causal effect of school closures on school dropouts and grade retention. School closure increases the probability of high-school dropout between 46 and 62 percent (1.7 and 2.3 percentage points). Also, school exit implies a 78 percent increase in the probability of grade reten- tion in fifth grade. If we only consider those students that switch school at the end of the 4th grade we find an increase between 4.8 and 4.9 percentage points in grade retention.

Suggested Citation

  • Nicolas Grau & Daniel Hojman & Alejandra Mizala, 2017. "School Closure and Educational Attainment: Evidence from a Market-based System," Working Papers wp439, University of Chile, Department of Economics.
  • Handle: RePEc:udc:wpaper:wp439
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    Cited by:

    1. Gonzalez, Felipe & Prem, Mounu, 2020. "Police Repression and Protest Behavior: Evidence from Student Protests in Chile," SocArXiv 3xk5r, Center for Open Science.
    2. Said Bouznad & Aomar Ibourk, 2020. "School Closures, Equality of Opportunity: Some Recommendations," Revista romaneasca pentru educatie multidimensionala - Journal for Multidimensional Education, Editura Lumen, Department of Economics, vol. 12(2Sup1), pages 103-110, September.
    3. Xie, Gang & Zhang, Lei, 2022. "Effects of school closure on household labor supply: Evidence from rural China," China Economic Review, Elsevier, vol. 71(C).
    4. Díaz, Juan & Grau, Nicolás & Reyes, Tatiana & Rivera, Jorge, 2021. "The impact of grade retention on juvenile crime," Economics of Education Review, Elsevier, vol. 84(C).
    5. Zachary Parolin & Emma K. Lee, 2021. "Large socio-economic, geographic and demographic disparities exist in exposure to school closures," Nature Human Behaviour, Nature, vol. 5(4), pages 522-528, April.

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    More about this item

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I2 - Health, Education, and Welfare - - Education

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