The impact of school choice and public policy on segregation: Evidence from Chile. 2010
Author: Gregory Elacqua

Teachers College Columbia University

School choice advocates argue that the introduction of vouchers can make improved educational opportunity available to the most disadvantaged children. Critics contend that vouchers increase the risk of exacerbating inequities based on race and socioeconomic status. They are worried about whether disadvantaged parents have enough information to make good choices and whether parental preferences will lead families to select schools based on the race or class composition of their student bodies and not on their academic quality. Critics also fear that in order to remain competitive and save costs, private schools will have incentives to skim off the highest performing students who are usually least demanding in terms of resources. Most evidence in Chile confirms skeptics’ concerns. Researchers have found that Chile’s unrestricted flat per-pupil voucher program has lead to increased stratification across public and private schools. What has been overlooked, however, is segregation between schools within a sector and variation within private voucher forprofit and non-profit (religious and secular) school sectors. Using a highly detailed dataset, I examine public and private school segregation. I find that public schools are more likely to serve disadvantaged – low-income and indigenous – students than private voucher schools. I also find that the typical public school is more internally diverse with regard to ethnicity and socioeconomic status than the typical private voucher school. While differential behavior is also found across private school ownership types, the differences do not always comport with theory. The data suggest that school tuition is much more important than other factors in explaining segregation patterns between and within school sectors. I also find that policies that provide incentives for schools to enroll disadvantaged students can help to mitigate the stratifying effects of educational vouchers. continue….