Policy Wonk

Chile's nationwide school vouchers

Headline result
+20 pp
rise in private enrollment rate; no gain in average test scores
Quasi-experimental
Implemented by
Government of Chile
Type
National government
Where
Chile
Region
Latin America & Caribbean
When
1981–present
Evidence
Quasi-experimental

The challenge

Chile wanted competition between schools to raise educational quality.

The case

In 1981 Chile introduced a universal voucher system: schools received a per-student payment, and private schools that accepted vouchers could compete with public ones. Private enrollment grew sharply. But studies found little evidence that competition improved average test scores, and middle-class families moved to voucher schools, increasing sorting by income. Chile has since reformed the system, including extra funding for disadvantaged students and limits on selection and fees. After vouchers arrived, more than 1,000 private schools entered the market and the private enrollment rate rose by 20 percentage points, Hsieh and Urquiola report.

Why the results were mixed

Competition alone didn't raise learning; it mostly redistributed students, with better-off families leaving public schools. Market designs need rules on selection and funding for disadvantaged students.

Sources