Vouchers, choice, and public policy… / R. A. Chumacero, R. D. Paredes
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Vouchers, choice, and public policy: An overview*
Vouchers, elección y política pública
Rómulo A. Chumacero**
Ricardo D. Paredes***
Abstract
The educational voucher system builds on the pillars of informed choice and
competition to improve the quality of the education provided. This document
summarizes some of the results of recent literature on the subject, and discusses
their public policy implications.
Key words: Vouchers, School choice, Chile.
JEL Classification: C25.
Resumen
El sistema de vouchers tiene como pilares fundamentales a la elección informada
de los padres y la competencia que esta genera para promover mejoras en la
calidad. Este documento resume la evidencia reciente en la materia y discute
algunas de sus implicancias de política pública.
Palabras clave: Vouchers, Elección de escuelas, Chile.
1. School Choice and Public Policy
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public funding is channeled through vouchers. Chile’s voucher program is unique
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A trend towards decreasing the participation of public schools in favor
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social segmentation in schools, with persistently poorly performing schools,
has facilitated a causal interpretation, blaming the voucher system for every
wrong in the Chilean system. Needless to say, this association is not proof of
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In essence, vouchers are designed relying on decisions by parents, schools,
and the government incentives, that should foster a virtuous circle. Specifically,
schools are eligible for vouchers if they do not charge more than a specified
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which depend on the daily assistance of enrolled students.
A first element that would configure a virtuous system is if school assistance
fosters learning, in which case schools can increase enrollment and assistance.
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and significantly associated with school assistance, and that, through several
incentives, schools indeed promote assistance.
A second element for a virtuous system depends on the response of parents to
school characteristics, particularly, on if the choice of school is related to learning
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schools, or even if they do, they cannot choose the school where their children
study, the ability of attracting more students through school quality is limited.
Depending on the diagnosis of these elements, different public policies
could emerge. A prevalent line of reasoning asserts that student mobility is
limited, proposing policies aimed at providing direct support to schools of poor
performance, instead of letting them close and letting students migrate to better
performing schools.
A third element, that has only been superficially addressed, has to do with
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with the way parents and the government proceed. If parents were not able
or willing to choose, schools would have no incentive to improve the level of
education they provide, as the main tool to attract more students.
Several studies in Chile and elsewhere have focused their attention on the
type of information relevant to signal school quality, how people process this
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of this literature suggested that parents were not informed and that quality was
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for choosing a school. Whilst they derive such interpretation by association,
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Vouchers, choice, and public policy… / R. A. Chumacero, R. D. Paredes
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quality on parent’s decisions.
Although these results prove that, on average, families consider information
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although quality appears as a statistically significant determinant of choice, its
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fraction of parents care enough about quality to provide incentives to schools to
improve quality in order to attract or retain these parents, who may determine
the viability of a school in the long run.
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searching for alternatives may not be profitable when the variance of quality
is relatively small.
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schools. Clearly, students are willing to travel long distances to assist to elite
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school of their choice.
It may still be the case for the Chilean educational system to be segregated
if it were the result of a concentration of parents who react to the quality of
education in certain economic segments or neighborhoods. In such case, whole
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concentrate their analysis on specific niches that may have limited alternatives
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of the schools, and how this could have an impact on school choice.
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In terms of positive economics, the relevance of school choice has to do with
its effect on learning and the quality of schools. Depending on the answer to
this question, school choice may be of interest from a public policy perspective.
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In Chile, a first wave of papers suggested a negative relation between
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for both private and public schools.
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2. Choice and Competition are relevant also in isolation
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and may have heterogeneous effects on different segments of the population.
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area of Santiago. In areas different from the capital, more isolation and fewer
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effect of competition in rural areas would require estimating transportation costs.
Absent precise georeferencing for households, reveled preferences approaches
as conducted in the recent literature are not possible.
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iJTPMBUJPOJOEJDBUPSuGPSFBDIDPVOUZcomuna
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using the fraction of students that assist to a school in the county where they live
with respect to the total number of students that assist to schools of the county
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respect to the total number of students that live in a county regardless of where
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many students from other counties, while more than a quarter of the students
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Diego de Almagro appear as the most isolated counties in Chile with values of
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Vouchers, choice, and public policy… / R. A. Chumacero, R. D. Paredes
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detrimental for performance, but competition is beneficial to performance,
particularly in isolated counties.
3. Concluding remarks
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profit schools to completely eliminating the voucher system have been voiced.
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as a mechanism to induce improvements on education has been at the center of
policy discussions in Chile and around the world. Recent evidence that relies
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pillars for a virtuous voucher system, namely that parents consider measures
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the magnitude of this effect along with its relevance for the more vulnerable
segments of the population opens the discussion of its relative merits.
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particularly in more isolated areas play an important role.
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