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Does the increase in competition between schools improve the quality of the service? The role of educational reform in Chile

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  • Cartagena Farias, Javiera
  • McIntosh, Steven

Abstract

We analyse the effect of geographic competition between schools on academic performance in Chile. The analysis controls for prior pupil performance, and a range of school and municipality characteristics. We allow for the endogeneity of voucher school location, using the number of local Catholic churches as an instrument. We find that a larger number of public schools positively affects the quality of education of other schools located in the same area, particularly amongst middle-class families and in middle-ranking schools. However, the number of voucher schools is associated with lower performance in neighbouring schools, which we attribute to pupil sorting.

Suggested Citation

  • Cartagena Farias, Javiera & McIntosh, Steven, 2018. "Does the increase in competition between schools improve the quality of the service? The role of educational reform in Chile," LSE Research Online Documents on Economics 90244, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:90244
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    File URL: http://eprints.lse.ac.uk/90244/
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    References listed on IDEAS

    as
    1. Böhlmark, Anders & Lindahl, Mikael, 2008. "Does School Privatization Improve Educational Achievement? Evidence from Sweden's Voucher Reform," IZA Discussion Papers 3691, Institute of Labor Economics (IZA).
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    3. Francisco Gallego & Andrés Hernando, 2009. "School Choice in Chile: Looking at the Demand Side," Documentos de Trabajo 356, Instituto de Economia. Pontificia Universidad Católica de Chile..
    4. David Bravo & Sankar Mukhopadhyay & Petra E. Todd, 2010. "Effects of school reform on education and labor market performance: Evidence from Chile's universal voucher system," Quantitative Economics, Econometric Society, vol. 1(1), pages 47-95, July.
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    6. Stephen Gibbons & Stephen Machin & Olmo Silva, 2008. "Choice, Competition, and Pupil Achievement," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 912-947, June.
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    8. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    9. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
    10. Steve Gibbons & Steve Gibbons & Stephen Machin & Olmo Silva, 2006. "Competition, Choice and Pupil Achievement," CEE Discussion Papers 0056, Centre for the Economics of Education, LSE.
    11. Karthik Muralidharan & Venkatesh Sundararaman, 2015. "Editor's Choice The Aggregate Effect of School Choice: Evidence from a Two-Stage Experiment in India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1011-1066.
    12. 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.
    13. Bradley, Steve & Taylor, Jim, 2002. "The Effect of the Quasi-market on the Efficiency-Equity Trade-Off in the Secondary School Sector," Bulletin of Economic Research, Wiley Blackwell, vol. 54(3), pages 295-314, July.
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    Cited by:

    1. Alessandrini, Diana & Milla, Joniada, 2022. "School Choice and Higher Education Attainment," IZA Discussion Papers 15330, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    school choice; competition; educational vouchers;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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