Educational Vouchers When There are Peer Group Effects - Size Matters

28 Pages Posted: 6 Feb 2003

See all articles by Elizabeth M. Caucutt

Elizabeth M. Caucutt

University of Western Ontario - Department of Economics

Abstract

In this article, I study the effects various educational voucher policies have on the sorting of children across schools and the per-student expenditure levels at these schools, when a child's peer group matters and students differ over income and ability. I find that, depending on the magnitude of the voucher, switching from a public system to a voucher system could entail either welfare gains or losses. All voucher policies under consideration lead to greater inequality than the public system; however, these increases are not monotone in the voucher size.

Suggested Citation

Caucutt, Elizabeth M., Educational Vouchers When There are Peer Group Effects - Size Matters. Available at SSRN: https://ssrn.com/abstract=312526

Elizabeth M. Caucutt (Contact Author)

University of Western Ontario - Department of Economics ( email )

London, Ontario N6A 5B8
Canada

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
18
Abstract Views
723
PlumX Metrics