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The Effect of School Voucher Spending on Initial Earnings

Author

Listed:
  • Correa, Juan A.

    (Universidad Andres Bello)

  • Parro, Francisco

    (Universidad Adolfo Ibañez)

  • Sánchez, Rafael

    (CUNEF, Madrid)

Abstract

We quantify the effect of school voucher spending on initial earnings. We use administrative data on the monetary resources received by schools from a targeted voucher program implemented in Chile. We merge this dataset with education and labor market administrative records for the universe of students enrolled in the Chilean education system. We find that an increase of US$100 in the yearly expenditure of voucher resources per student raises initial earnings by 2.3%. However, we find that the positive effect of voucher spending only holds for private voucher schools that operate in local education markets with low enrollment concentration.

Suggested Citation

  • Correa, Juan A. & Parro, Francisco & Sánchez, Rafael, 2021. "The Effect of School Voucher Spending on Initial Earnings," IZA Discussion Papers 14552, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14552
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    More about this item

    Keywords

    school vouchers; education spending; earnings;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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