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Using School Scholarships to Estimate the Effect of Government Subsidized Private Education on Academic Achievement in Chile

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  • Priyanka Anand
  • Alejandra Mizala
  • Andrea Repetto

Abstract

This paper estimates the impact of private education on low-income students in Chile. We attempt to reduce selection bias by using reduced-tuition paying, low-income students in private schools as the treatment group, based on our finding that these students were, to some extent, randomly selected out of the public school control group. Propensity score matching is then used to calculate the difference in academic achievement of students in the treatment group versus their counterpart in the control group. Our results reveal that students in private voucher schools with tuition score slightly higher than students in public schools. The difference in standardized test scores is approximately 8 points, a test score gain of almost 0.15 standard deviations.

Suggested Citation

  • Priyanka Anand & Alejandra Mizala & Andrea Repetto, 2006. "Using School Scholarships to Estimate the Effect of Government Subsidized Private Education on Academic Achievement in Chile," Documentos de Trabajo 220, Centro de Economía Aplicada, Universidad de Chile.
    • Handle: RePEc:edj:ceauch:220
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    References listed on IDEAS

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    1. Alan B. Krueger & Pei Zhu, 2002. "Another Look at the New York City School Voucher Experiment," Working Papers 849, Princeton University, Department of Economics, Industrial Relations Section..
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
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    5. Mizala, Alejandra & Romaguera, Pilar, 2001. "Factores socioeconómicos explicativos de los resultados escolares en la educación secundaria en Chile," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(272), pages 515-549, Otubre-di.
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    7. Andrea Tokman Ramos, 2002. "Is Private Education Better? Evidence from Chile," Working Papers Central Bank of Chile 147, Central Bank of Chile.
    8. Hsieh, Chang-Tai & Urquiola, Miguel, 2006. "The effects of generalized school choice on achievement and stratification: Evidence from Chile's voucher program," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1477-1503, September.
    9. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
    10. Claudio Sapelli & Bernardita Vial, 2002. "The Performance of Private and Public Schools in the Chilean Voucher System," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 39(118), pages 423-454.
    11. Patrick McEwan, 2001. "The Effectiveness of Public, Catholic, and Non-Religious Private Schools in Chile's Voucher System," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 103-128.
    12. Alejandra Mizala & Pilar Romaguera, 2000. "School Performance and Choice: The Chilean Experience," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 392-417.
    13. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 01 Feb 2018.
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    Cited by:

    1. Nicolas Grau & Daniel Hojman & Alejandra Mizala, 2015. "Destructive Creation: School Turnover and Educational Attainment," Documentos de Trabajo 312, Centro de Economía Aplicada, Universidad de Chile.
    2. Fernandes, Reynaldo & Gallego, Francisco A., 2008. "Comments," LSE Research Online Documents on Economics 123125, London School of Economics and Political Science, LSE Library.
    3. Andrea Repetto, 2013. "Vulnerabilidad y Oportunidades: Los Jóvenes Inactivos en Chile," Working Papers wp_031, Adolfo Ibáñez University, School of Government.
    4. Ambrose Nnaemeka Omeje & Solomon Ogbonna Abugu, 2015. "The Impact of Scholarships on Students’ Academic Performance: A Case of Tertiary Institutions in Enugu State, Nigeria," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 4(2), pages 93-104, June.
    5. Idrovo Aguirre, Byron, 2007. "¿Son las escuelas particulares subvencionadas mejores que las municipales? Estimación de la ecuación de logro escolar para Chile [Are the subsidized particular schools better than the public school," MPRA Paper 10665, University Library of Munich, Germany.
    6. Bernardo Lara & Alejandra Mizala & Andrea Repetto, 2009. "The Effectiveness of Private Voucher Education: Evidence from Structural School Switches," Documentos de Trabajo 263, Centro de Economía Aplicada, Universidad de Chile.
    7. Paredes, Ricardo D. & Paredes, Valentina, 2009. "Chile: academic performance and educational management under a rigid employment regime," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    8. 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.

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