Competition and Educational Outcomes: Theory and Evidence from Chile

Gallego, Francisco A.

doi:10.2139/ssrn.317499

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Competition and Educational Outcomes: Theory and Evidence from Chile

Central Bank of Chile Working Paper No. 150; Catholic University of Chile Department of Economics Working Paper No. 217

49 Pages Posted: 21 Jul 2002

See all articles by Francisco A. Gallego

Francisco A. Gallego

Pontificia Universidad Católica de Chile - Institute of Economics; Massachusetts Institute of Technology (MIT) - Department of Economics

Date Written: May 2002

Abstract

This paper presents a theoretical model and empirical estimations to evaluate the effects of competition on school quality. Empirical estimations, using roughly 5,000 Chilean schools in the 1994-1997 period and econometric techniques robust to endogeneity, support the theoretical model and show a positive and relevant effect of competition on the results of public-subsidized schools. The effects are bigger for the fraction of public-subsidized schools that are private, because they have incentives more directly related to academic performance.

Note: The downloadable document is written in Spanish.

Keywords: Vouchers, Competition, Chile

JEL Classification: H52, I21, I22

Suggested Citation: Suggested Citation

Gallego, Francisco A., Competition and Educational Outcomes: Theory and Evidence from Chile (May 2002). Central Bank of Chile Working Paper No. 150; Catholic University of Chile Department of Economics Working Paper No. 217, Available at SSRN: https://ssrn.com/abstract=317499 or http://dx.doi.org/10.2139/ssrn.317499