Impact of competition and voucher school subsidy law on education quality in Chile
DOI:
https://doi.org/10.17230/ecos.2021.52.6Keywords:
Education quality, competition, subsidy, public schoolsAbstract
We analyzed the effect of competition and the Preferential School Subsidies (SEP) Law on the quality of Chilean schools for the period 2000-2013. We use dynamic panel regressions, and we show that competition has a positive and non-linear effect on education quality. The initial positive effect of competition on education quality is not persistent and is reversed for high levels of competition. The impact of competition on education quality also depends on the administrative dependence of schools. The SEP Law increased education quality, but through competition the inequality between public and private schools deepened. These results are relevant for the design of public policies aimed at reducing inequality in Chilean education.
Downloads
References
Abdul-Hamid, H. (2017). How to build progressive centralized and hybrid data systems: The Cases of Chile and Australia, pp. 189–231. https://doi.org/10.1596/978-1-4648-1099-2_ch8
Arellano, M. & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies 58(2), pp. 277-297. https://doi.org/10.2307/2297968
Auguste, S. & Valenzuela, J. (2004). Do students benefit from school competition? The Chilean experience. Doctoral Dissertation, University of Michigan.
Belfield, C. & Levin, H. (2002). The effects of competition between schools on educational outcomes: A review for the United States. Review of Educational Research, 72(2), pp. 279–341. https://doi.org/10.3102/00346543072002279
Borland, M. & Howsen, R. (1996). Competition, expenditures and student performance in mathematics: A comment on Crouch et al. Public Choice, 87, pp. 395–400.
Chumacero, R., Gallegos, J. & Paredes, R. (2016). Competition pressures and academic performance in Chile. Estudios de Economía, 43(2), pp. 217-232. http://dx.doi.org/10.4067/S0718-52862016000200003
Correa, J., Parro, F. & Reyes, L. (2014). The effects of vouchers on school results: Evidence from Chile’s targeted voucher program. Journal of Human Capital, 8(4). https://doi.org/10.1086/679282
Cuesta, J., González, F. & Larroulet, C. (2020). Distorted quality signals in school markets. Journal of Development Economics, 147. https://doi.org/10.1016/j.jdeveco.2020.102532
Dijkgraaf, E., Gradus, R. & De Jong, J. (2013). Competition and educational quality: Evidence from the Netherlands. Empirica, 40, pp. 607–634. https://doi.org/10.1007/s10663-012-9195-6
Donoso, S. & Hawes, G. (2002). Eficiencia escolar y diferencias socioeconómicas: a propósito de los resultados de las pruebas de medición de la Calidad de la Educación en Chile. Educacao e Pesquisa, 28(2), pp. 28-40. https://doi.org/10.1590/S1517-97022002000200003
Elacqua, G. (2012). The impact of school choice and public policy on segregation: Evidence from Chile. International Journal of Educational Development, 32(3), pp. 444-453. https://doi.org/10.1016/j.ijedudev.2011.08.003
Epple, D. & Romano, R. (1998). Competition between private and public schools, vouchers, and peer-group effects. The American Economic Review, 88(1), pp. 33-62. https://www.jstor.org/stable/116817
Feigenberg, B., Yan, R. & Rivkin, S. (2019). Illusory gains from Chile’s targeted school voucher experiment. The Economic Journal, 129(623), pp. 2805–2832. https://doi.org/10.1093/ej/uez023
Friedman, M. & Friedman, R. (1981). Free to choose. New York: Avon Books.
Friedman, M. (1997). Public schools: Make them private. Education Economics, 5(3), pp. 341-344. https://doi.org/10.1080/09645299700000026
Gallego, F. (2002). Competencia y resultados educativos: Teoría y evidencia para Chile. Cuadernos de Economía, 39(118), pp. 309-352. http://dx.doi.org/10.4067/S0717-68212002011800003
Gallegos, J., Chumacero, R. & Paredes, R. (2017). School choice and switching costs. El Trimestre Económico, 84(2), pp. 309-336. http://dx.doi.org/10.20430/ete.v84i334.303
Gómez. D., Chumacero, R. & Paredes, R. (2012). School choice and information. Estudios de Economía, 39(2), pp. 143-157. http://dx.doi.org/10.4067/S0718-52862012000200003
González, P., Mizala, A. & Romaguera, P. (2002). Recursos diferenciados a la educación subvencionada en Chile. Serie Economía No. 150, Centro de Economía Aplicada, Universidad de Chile. Retrieved from http://www.archivochile.com/edu/doc_analit/est_doc_analit00004.pdf
Greene, K. & Kang, B. (2004). The effect of public and private competition on high school outputs in New York State. Economics of Education Review, 23(5), pp. 497–506. https://doi.org/10.1016/j.econedurev.2003.12.001
Hsieh, C. & Urquiola, M. (2003). When schools compete, how do they compete? An assessment of Chile’s nationwide school voucher program. National Bureau of Economic Research NBER Working paper 10008. https://doi.org/10.3386/w10008
Larrañaga, O. & Peirano, C. (2006). Impacto distributivo de la subvención preferencial. Trabajo de investigación en políticas públicas No.1, Departamento de Economía, Universidad de Chile. Retrieved from http://repositorio.uchile.cl/handle/2250/144833
López-Torres, L., Prior, D. & Santín, D. (2019). Assessing the effect of educational programs on public schools performance. Applied Economics, 51(48), pp. 5205–5226. https://doi.org/10.1080/00036846.2019.1610712
Marlow, M. (2000). Spending, school structure, and public education quality: Evidence from California. Economics of Education Review, 19(1), pp. 89–106. https://doi.org/10.1016/S0272-7757(99)00035-7
Mizala, A. & Romaguera, P. (2001). School performance and choice: The Chilean experience. The Journal of Human Resources, 35(2), pp. 392-417. https://doi.org/10.2307/146331
Mizala, A. & Torche, F. (2013). ¿Logra la Subvención Escolar Preferencial igualar los resultados educativos?. Documento de Referencia No. 9, Espacio Público, Universidad de Chile. Retrieved from https://www.espaciopublico.cl/wp-content/uploads/2016/05/19.pdf
Mizala, A. & Torche, F. (2017). Means-Tested school vouchers and educational achievement: Evidence from Chile’s universal voucher system. The ANNALS of the American Academy of Political and Social Science, 674(1), pp. 163–183. https://doi.org/10.1177/0002716217732033
Muralidharan, K. & Kremer, M. (2006). Public and private schools in rural India. In School Choice International: Exploring Public-Private Partnerships. MIT Press. https://doi.org/10.7551/mitpress/9780262033763.003.0005
Paredes, R. & Pinto, J. (2009). ¿El fin de la educación pública en Chile?. Estudios de Economía, 36(1), pp. 47-66. http://dx.doi.org/10.4067/S0718-52862009000100003
Redondo, J., Descouvieres, C. & Rojas, K. (2005). Eficacia y eficiencia en la enseñanza media Chilena desde los datos SIMCE 1994, 1998 y 2001. Revista Enfoques Educacionales, 7(1), pp. 125-144. https://doi.org/10.5354/0717-3229.2005.48183
Reschovsky, A. & Imazeki, J. (2001). Achieving educational adequacy through school finance reform. Journal
of Education Finance, 26, pp. 373–396.
Román, M. & Perticará, M. (2012). Student mobility in low quality schools: Segmentation among the most vulnerable students. Estudios de Economía, 39(2), pp. 159-177. http://dx.doi.org/10.4067/S0718-52862012000200004
Sahin, A. (2004). The incentive effects of higher education subsidies on student effort. Federal Reserve Bank of New York Staff Reports, No. 192, August. Retrieved from https://www.newyorkfed.org/research/staff_reports/sr192.html
Sander, W. (1999). Private schools and public school achievement. The Journal of Human Resources, 34(4), pp. 697-709. https://doi.org/10.2307/146413
Sapelli, C. (2003). The Chilean voucher system: Some new results and research challenges. Cuadernos de Economía, 40(121), pp. 530-538. http://dx.doi.org/10.4067/S0717-68212003012100020
Sapelli, C. & Torche, A. (2002). Subsidios al alumno o a la escuela: efectos sobre la elección de escuelas públicas. Cuadernos de Economía, 39(117), pp. 175-202. http://dx.doi.org/10.4067/S0717-68212002011700002
Sapelli, C. & Vial, B. (2002). The performance of private and public schools in the Chilean voucher system. Cuadernos de Economía, 39(118), pp. 423-454. http://dx.doi.org/10.4067/S0717-68212002011800006
Shih, C. (2012). The effects of governmental subsidy on the quality of education in Taiwan’s private universities and colleges. In: Park J.J., Zomaya A., Yeo SS., Sahni S. (eds) Network and Parallel Computing. NPC 2012. Lecture Notes in Computer Science, vol 7513. Springer, Berlin. https://doi.org/10.1007/978-3-642-35606-3_43
Urquiola, M. (2016). Competition among schools: Traditional public and private schools. In Handbook of the Economics of Education (Vol. 5, pp. 209-237). Elsevier. https://doi.org/10.1016/B978-0-444-63459-7.00004-X
Valenzuela, J., Villarroel, G. & Villalobos, C. (2013). Ley de Subvención Escolar Preferencial (SEP): algunos resultados preliminares de su implementación. Pensamiento Educativo: Revista de Investigación Educacional Latinoamericana, 50(2), pp. 113-131. http://dx.doi.org/10.7764/PEL.50.2.2013.7
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Jorge Andrés Muñoz Mendoza, Carmen Lissette Veloso Ramos, Sandra María Sepúlveda Yelpo, Carlos Leandro Delgado Fuentealba, Rodrigo Alberto Fuentes Solís, Edinson Edgardo Cornejo Saavedra
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
