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The Effects of Vouchers on School Results: Evidence from Chile's Targeted Voucher Program

Juan Correa, Francisco Parro and Loreto Reyes

Journal of Human Capital, 2014, vol. 8, issue 4, 351 - 398

Abstract: We use data from Chile's targeted voucher program to test the effects of vouchers on school results. Targeted vouchers have delivered extra resources to low-income, vulnerable students since 2008. Moreover, under this scheme, additional resources are contingent on the completion of specific education reforms. Using a difference-in-differences approach and a market-level empirical analysis, we find a positive and significant effect of vouchers on standardized test scores. Additionally, our results highlight the importance of conditioning the delivery of resources to some specific academic goals in markets with institutional characteristics that prevent public schools from behaving as profit-maximizing firms.

Date: 2014
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