Does Privatization Improve Education? The Case of Chile’s National Voucher Plan
Contributor Name:
Sudakshina
The push to expand public funding for private education in the form of vouchers or charter schools is based on several claims for which there is little empirical evidence. Recent studies, however, provide insights on how education markets function, and help evaluate the claims made in favor of vouchers.
Voucher advocates claim that public education denies low-income consumers free choice in their children’s education. The authors examine school systems in Chile where vouchers have been implemented on a large scale, and where private school supply has increased. Findings from recent studies indicate that:
- Markets in education scarcely improve academic performance;
- Vouchers can also increase inequality in school system, mainly through peer effects;
- Voucher systems do not provide significantly better education to low-income students.