Working Paper No. 578

School Vouchers in Practice: Competition Won't Hurt You!

Published: April 30, 2002Pages: 48Keywords: Public Education, Independent Schools, Student Achievement, School Vouchers, School Choice, Sample Selection Model, Panel Data Model, Instrumental Variable EstimationJEL-codes: H42; H52; I28; L19

School Vouchers in Practice: Competition Won't Hurt You! F. Mikael Sandström and Fredrik Bergström


An important issue in the debate on voucher systems and school choice is what effects competition from independent schools will have on public schools. Sweden has made a radical reform of its system for financing schools. Independent and public schools operate on close to equal terms under a voucher system covering all children. Sample selection models are estimated, using a data set of about 28 000 individuals. In addition, panel data models are estimated on 288 Swedish municipalities. The findings support the hypothesis that school results in public schools improve due to competition.

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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