Working Papers, Department of Economics, Lund University
School Vouchers and Public School Productivity - The Case of the Swedish Large Scale Voucher Program
Abstract: Since the school voucher reform in 1992/93 Sweden has
experienced a rapid increase in private schools. School regulations allow
private and public schools to compete for students on very similar terms.
This makes the Swedish educational market interesting for studying how
competition affects the provision of education. In this study competition
and public school productivity are analyzed for 105 urban municipalities
during the period 1998/99 to 2001/02. The empirical estimations are
performed in two stages. In the first stage, productivity is estimated
using Data Envelopment Analysis (DEA) and a Malmquist productivity index.
In the second stage, the estimated productivity is regressed on private
school competition and a number of control variables. We cannot reject
competition to be exogenous in a Hausman test. The coefficient for
competition is not significant at the 5 percent level in any of the
Keywords: Malmquist index; competition; education; (follow links to similar papers)
JEL-Codes: H73; I21; (follow links to similar papers)
32 pages, March 23, 2006
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