Selection and Copayments: The Two Traps of the School System

Abstract

In the early 1980s, a sweeping education reform in Chile decentralized the administration and financing of public schools toward a
municipally managed system and invited the private sector to take part in the development of education through shared financing, driven by the implementation of a voucher system. The idea was to introduce a greater degree of competition into the market so as to force education providers to supply a better-quality service and, at the same time, to create the conditions for an expansion of educational services. Continue reading...