School Choice, Stratification, and Information on School Performance: Lessons from Chile

A possible trade-off between greater efficiency and equal opportunity is central to the debate on school vouchers, for instance. Whereas economists since Milton Friedman have argued that school choice would align provider incentives with the interests of consumers and thus lead to increases in educa...

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Main Authors: McEwan, Patrick J., Urquiola, Miguel, Vegas, Emiliana
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4754
id okr-10986-4754
recordtype oai_dc
spelling okr-10986-47542021-04-23T14:02:19Z School Choice, Stratification, and Information on School Performance: Lessons from Chile McEwan, Patrick J. Urquiola, Miguel Vegas, Emiliana Analysis of Education I210 Educational Finance I220 Education: Government Policy I280 Economic Development: Human Resources Human Development Income Distribution Migration O150 A possible trade-off between greater efficiency and equal opportunity is central to the debate on school vouchers, for instance. Whereas economists since Milton Friedman have argued that school choice would align provider incentives with the interests of consumers and thus lead to increases in educational quality, a more recent literature points to the possibility that school choice might exacerbate stratification by socioeconomic status across schools. In "School Choice, Stratification, and Information on School Performance: Lessons from Chile," Patrick J. McEwan, Miguel Urquiola, and Emiliana Vegas contribute to this literature in two ways. First, using highly disaggregated, district-level data for Chile and a regression-discontinuity design, they find evidence that the entry of private schools into the education market is not associated with significant increases in test scores but is associated with increases in social stratification. This conclusion is consistent with previous results from the literature, suggesting that greater school choice leads to increased sorting, with no commensurate improvements in average achievement. Second, McEwan, Urquiola, and Vegas consider the implications of sampling variance (and even of "population variance" over time) for policy schemes that reward or punish schools on the basis of changes in average test scores. Policymakers have focused on these so-called value added (that is, first-differenced) measures of test scores, since test score levels are highly correlated with family socioeconomic status, as a result of the stratification previously discussed. Changes in scores also reflect sampling variation, however, including variation among the specific groups of students starting school in any given year, as well as genuine changes in the quality of the services provided by the schools. Although this issue is unlikely to be a serious problem for large municipalities, it can generate substantial rerankings for individual schools and even for smaller districts, as the authors confirm through a number of statistical tests. These findings suggest that the Chilean debates on school choice, on the ideal design for voucher schemes, and on the precise manner in which data on student achievement can be used to reward or punish schools have contributed to advances in the educational agenda in Latin America but have not yet reached a final conclusion. 2012-03-30T07:29:34Z 2012-03-30T07:29:34Z 2008-04 Journal Article Economia: Journal of the Latin American and Caribbean Economic Association 15297470 http://hdl.handle.net/10986/4754 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Latin America Chile
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Analysis of Education I210
Educational Finance I220
Education: Government Policy I280
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
spellingShingle Analysis of Education I210
Educational Finance I220
Education: Government Policy I280
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
McEwan, Patrick J.
Urquiola, Miguel
Vegas, Emiliana
School Choice, Stratification, and Information on School Performance: Lessons from Chile
geographic_facet Latin America
Chile
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description A possible trade-off between greater efficiency and equal opportunity is central to the debate on school vouchers, for instance. Whereas economists since Milton Friedman have argued that school choice would align provider incentives with the interests of consumers and thus lead to increases in educational quality, a more recent literature points to the possibility that school choice might exacerbate stratification by socioeconomic status across schools. In "School Choice, Stratification, and Information on School Performance: Lessons from Chile," Patrick J. McEwan, Miguel Urquiola, and Emiliana Vegas contribute to this literature in two ways. First, using highly disaggregated, district-level data for Chile and a regression-discontinuity design, they find evidence that the entry of private schools into the education market is not associated with significant increases in test scores but is associated with increases in social stratification. This conclusion is consistent with previous results from the literature, suggesting that greater school choice leads to increased sorting, with no commensurate improvements in average achievement. Second, McEwan, Urquiola, and Vegas consider the implications of sampling variance (and even of "population variance" over time) for policy schemes that reward or punish schools on the basis of changes in average test scores. Policymakers have focused on these so-called value added (that is, first-differenced) measures of test scores, since test score levels are highly correlated with family socioeconomic status, as a result of the stratification previously discussed. Changes in scores also reflect sampling variation, however, including variation among the specific groups of students starting school in any given year, as well as genuine changes in the quality of the services provided by the schools. Although this issue is unlikely to be a serious problem for large municipalities, it can generate substantial rerankings for individual schools and even for smaller districts, as the authors confirm through a number of statistical tests. These findings suggest that the Chilean debates on school choice, on the ideal design for voucher schemes, and on the precise manner in which data on student achievement can be used to reward or punish schools have contributed to advances in the educational agenda in Latin America but have not yet reached a final conclusion.
format Journal Article
author McEwan, Patrick J.
Urquiola, Miguel
Vegas, Emiliana
author_facet McEwan, Patrick J.
Urquiola, Miguel
Vegas, Emiliana
author_sort McEwan, Patrick J.
title School Choice, Stratification, and Information on School Performance: Lessons from Chile
title_short School Choice, Stratification, and Information on School Performance: Lessons from Chile
title_full School Choice, Stratification, and Information on School Performance: Lessons from Chile
title_fullStr School Choice, Stratification, and Information on School Performance: Lessons from Chile
title_full_unstemmed School Choice, Stratification, and Information on School Performance: Lessons from Chile
title_sort school choice, stratification, and information on school performance: lessons from chile
publishDate 2012
url http://hdl.handle.net/10986/4754
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