December 4, 2012

THEY'RE JUST A MARKET FORCE:

Lessons on School Choice from Sweden (Adam Ozimek, 12/03/12, Forbes)

A recent paper by Bohlmark and Lindahl uses high quality administrative data for the entire country of Swedend for students who attended compulsary school (grades 1 through 9) from 1988 to 2009. Importantly this includes data for the period prior to the 1992 voucher reform. This allows them to control for pre-reform trends, which studies in Chile did not have, a fact that Bohlmark and Lindahl argues may have biased the results.

Sweden's voucher policy allowed easy entry of independently run private schools which any student could attend. Prior to this policy less than 1% of Sweden's students attended private schools, but by 2009 it had increased to 11%. The authors find that the higher percent of voucher students there are in a district the better students do on a variety of outcomes. They find a a positive effect on test scores, compulsary school grades, choosing an academic high-school track, high-school grades, probability of attending college, and average education by age 24. The study is impressive in it's scope of data, especially in tracking later outcome variables.

Importantly, they find that the primary way that competition effects outcomes is by improving the performance of the nearby public schools, and not by outperforming the public schools.
Posted by at December 4, 2012 8:19 AM
  
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