IDEAS home Printed from https://ideas.repec.org/p/tse/wpaper/129301.html
   My bibliography  Save this paper

School Choice and Class-Size Effects: Unintended Consequences of a Targeted Voucher Program

Author

Listed:
  • De Groote, Olivier
  • Gazmuri, Ana

Abstract

We propose a novel method to estimate education production functions on observational data in a context of school choice. We exploit panel data of schools and estimate heteroge-neous effects, while allowing for unobserved school, student, and teacher characteristics to be correlated with observed inputs. We then use this model to study the channels behind changes in observed test scores following a voucher reform in Chile. After the reform, many students left public schools, leading to a passive decrease in class size. We show that this can explain part of the policy effects as we find large class size effects for several schools, especially those that saw a decrease after the policy change.

Suggested Citation

  • De Groote, Olivier & Gazmuri, Ana, 2024. "School Choice and Class-Size Effects: Unintended Consequences of a Targeted Voucher Program," TSE Working Papers 24-1526, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:129301
    as

    Download full text from publisher

    File URL: https://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2024/wp_tse_1526.pdf
    File Function: Full Text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Juan A. Correa & Francisco Parro & Loreto Reyes, 2014. "The Effects of Vouchers on School Results: Evidence from Chile's Targeted Voucher Program," Journal of Human Capital, University of Chicago Press, vol. 8(4), pages 351-398.
    2. Stéphane Bonhomme & Elena Manresa, 2015. "Grouped Patterns of Heterogeneity in Panel Data," Econometrica, Econometric Society, vol. 83(3), pages 1147-1184, May.
    3. Miguel Urquiola & Eric Verhoogen, 2009. "Class-Size Caps, Sorting, and the Regression-Discontinuity Design," American Economic Review, American Economic Association, vol. 99(1), pages 179-215, March.
    4. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja & Tristan Zajonc, 2011. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 29-54, July.
    5. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
    6. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    7. Navarro-Palau, Patricia, 2017. "Effects of differentiated school vouchers: Evidence from a policy change and date of birth cutoffs," Economics of Education Review, Elsevier, vol. 58(C), pages 86-107.
    8. 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.
    9. 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(5), pages 1349-1368, December.
    10. Ding, Weili & Lehrer, Steven F., 2014. "Understanding the role of time-varying unobserved ability heterogeneity in education production," Economics of Education Review, Elsevier, vol. 40(C), pages 55-75.
    11. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ceron, Francisco I. & Bol, Thijs & van de Werfhorst, Herman G., 2022. "The dynamics of achievement inequality: The role of performance and choice in Chile," International Journal of Educational Development, Elsevier, vol. 92(C).
    2. Ensar Yılmaz & Zeynep Kaplan, 2022. "Heterogeneity of market power: firm-level evidence," Economic Change and Restructuring, Springer, vol. 55(2), pages 1207-1228, May.
    3. Bournakis, Ioannis & Tsionas, Mike G., 2023. "A Non-Parametric Estimation of Productivity with Idiosyncratic and Aggregate Shocks: The Role of Research and Development (R&D) and Corporate Tax," MPRA Paper 118100, University Library of Munich, Germany.
    4. Erik Brynjolfsson & Wang Jin & Kristina McElheran, 2021. "The power of prediction: predictive analytics, workplace complements, and business performance," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(4), pages 217-239, October.
    5. Michael Peneder & Catherine Prettner, 2021. "Entwicklung der Produktivität österreichischer Unternehmen von 2008 bis 2018. Auswertung von Mikrodaten für Österreich im Rahmen von Multiprod 2.0," WIFO Studies, WIFO, number 67450, February.
    6. Simon Pröll & Giannis Karagiannis & Klaus Salhofer, 2019. "Advertising and Markups: The Case of the German Brewing Industry," Working Papers 732019, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    7. Victor Aguirregabiria & Margaret Slade, 2017. "Empirical models of firms and industries," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1445-1488, December.
    8. Fei Jia & Minjie Huang & Shunan Zhao, 2024. "Estimation of endogenous firm productivity without instruments: an application to foreign investment," Journal of Productivity Analysis, Springer, vol. 61(2), pages 135-155, April.
    9. Contreras, Dante & Elacqua, Gregory & Martinez, Matías & Miranda, Álvaro, 2016. "Bullying, identity and school performance: Evidence from Chile," International Journal of Educational Development, Elsevier, vol. 51(C), pages 147-162.
    10. Petrick, Matin & Kloss, Mathias, 2013. "Identifying Factor Productivity from Micro-data: The case of EU agriculture," Factor Markets Working Papers 144, Centre for European Policy Studies.
    11. Daniel Ackerberg & Garth Frazer & Kyoo il Kim & Yao Luo & Yingjun Su, 2020. "Under-Identification of Structural Models Based on Timing and Information Set Assumptions," Working Papers tecipa-679, University of Toronto, Department of Economics.
    12. Michael Peneder & Christian Rammer, 2018. "Measuring Competitiveness," WIFO Studies, WIFO, number 60838, February.
    13. Grieco, Paul & Pinkse, Joris & Slade, Margaret, 2018. "Brewed in North America: Mergers, marginal costs, and efficiency," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 24-65.
    14. Alessandrini, Diana & Milla, Joniada, 2022. "School Choice and Higher Education Attainment," IZA Discussion Papers 15330, Institute of Labor Economics (IZA).
    15. João Gabriel Pio & Eduardo Gonçalves & Claúdio R. F. Vasconcelos, 2021. "Technology Spillovers Through Exports: Empirical Evidence for the Chinese Case," Journal of Industry, Competition and Trade, Springer, vol. 21(3), pages 423-443, September.
    16. Peneder, Michael & Rammer, Christian (ed.), 2018. "Measuring Competitiveness," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 181906, September.
    17. Khanna, Rupika & Sharma, Chandan, 2021. "Do technological investments promote manufacturing productivity? A firm-level analysis for India," Economic Modelling, Elsevier, vol. 105(C).
    18. Roman Fossati & Heiko Rachinger, 2021. "Total Factor Productivity: Exploring firms’ dynamics and heterogeneity over the business cycle," Asociación Argentina de Economía Política: Working Papers 4471, Asociación Argentina de Economía Política.
    19. Ackerberg, Daniel A. & Frazer, Garth & Kim, Kyoo il & Luo, Yao & Su, Yingjun, 2023. "Under-identification of structural models based on timing and information set assumptions," Journal of Econometrics, Elsevier, vol. 237(1).
    20. Jamil, Nida & Chaudhry, Theresa Thompson & Chaudhry, Azam, 2022. "Trading textiles along the new silk route: The impact on Pakistani firms of gaining market access to China," Journal of Development Economics, Elsevier, vol. 158(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tse:wpaper:129301. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/tsetofr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.